CHS Finalizes Purchase of Sharon Health System
SHARON, Pa. -- Community Health Systems Inc. completed its purchase of substantially all of the assets of Sharon Regional Health System, the companies jointly announced late Tuesday.
Sharon Regional Health System, which operates a 251-bed hospital and 23 satellite centers in Mercer and counties, announced plans last August to affiliate with CHS, which operates ValleyCare Health System Inc. of Ohio. The sale follows approval by regulatory agencies.
Through its subsidiaries, Community Health Systems now owns, leases or operates 208 affiliated hospitals in 29 states with an aggregate of approximately 31,500 licensed beds.
Pennsylvania is CHS’s second largest state as measured by number of affiliated hospitals, CHS says. Also Tuesday, CHS said it has leased Munroe Regional Medical Center in Ocala, Fla. CHS operates 26 hospitals in Florida, its largest state cluster.
“The acquisition of Sharon Regional and the lease of Munroe Regional are important, strategic affiliations for our company as we work to develop networks in key states,” said Wayne T. Smith, chairman and CEO of CHS. “Both hospitals have served their respective communities with quality care for many years, and we appreciate the opportunity to work with the medical staffs and employees in their commitment to providing quality health services. We are also excited about our growing relationship with UF Health Shands and look forward to the ways we can work together to make a positive impact on quality care in Florida.”
Said John R. Janoso Jr., president and CEO of Sharon Regional, “This new affiliation will support health-care delivery in our community with the infusion of new resources to support our staff in their efforts to provide the highest quality, personalized care. This transition will be invisible to our patients as their care will continue care without interruption, with the only changes being administrative and behind the scenes."
CHS committed to invest at least $75 million over the next five years "to advance facilities, services and medical equipment; to continue and grow essential services, including medical/surgical, critical care, open heart and vascular surgery, emergency services, and obstetrics; and continue charity care policies to help serve indigent patients and participate in Medicare and Medicaid," Sharon Regional said.
Additionally, Sharon Regional employees in good standing have been hired into the same positions at the same rate of pay, with their years of service recognized, relationships are continuing with all physicians on the hospital’s staff and “strong efforts” will be made to recruit new physicians, and a local board of trustees, comprised of community leaders and members of the hospital’s medical staff, will be appointed.
Sharon Regional's schools of nursing and radiology will continue to operate. As a result of the transaction, Sharon Regional, formerly a nonprofit health system, will become a tax-paying entity, "contributing substantial new revenue to the community," the announcement noted.
“With the resources now available, we look forward to building on the quality of care we deliver,” said John Gallagher, M.D., president of the Sharon Regional medical staff. “We will be a stronger health-care system with sufficient access to capital to improve our infrastructure and invest in technology.”
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email.
Copyright 2015 Youngstown Publishing Co. DBA The Business Journal
Developed by Tyler Clark.