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March 5, 2018

Around the nation: Atrium suspends merger talks with UNC Health Care

Daily Briefing

    The systems had planned to wrap up talks by the end of last year, in today's bite-sized hospital and health industry news from Indiana, North Carolina, and Ohio. 

    • Indiana: Franciscan Health has named Barbara Anderson its corporate SVP of operational transformation. Anderson recently served as the president and CEO of Franciscan Health Crown Point and has also served as president of Franciscan Health Munster. Daniel McCormick will succeed Anderson as president and CEO of Franciscan Health Crown (Vaidya, Becker's Hospital Review, 3/1).

    • North Carolina: Atrium Health has suspended merger talks with UNC Health Care, Atrium confirmed Friday. UNC and Atrium, previously known as Carolinas HealthCare System, had announced the planned merger in August 2017. Talks lasted longer than expected, as the deal was expected to be finalized at the end of last year, according to the Charlotte Business Journal. Atrium CEO Gene Woods and Board Chair Ed Brown in a letter Friday wrote that the systems "respectfully differed on how best to accomplish" the merger goal of creating a comprehensive network of primary, specialty, and on-demand care in the southeast. However, Woods and Brown said Atrium remains "steadfast in our belief that together we would be uniquely positioned to transform health care" (Rege, Becker's Hospital Review, 3/2; Thomas, Charlotte Business Journal, 3/2).

    • Ohio: Premier Health and Encompass Health have announced plans to build a rehabilitation center near Miami Valley Hospital. The 60-bed facility will cost $24 million and is expected to open in early 2020 (Dayton Business Journal, 3/1; Schroeder, Dayton Daily News, 3/1).

    Next: Get the cheat sheet for hospital partnership and affiliation models

    The field guide to hospital partnership and affiliation models

    Behind the flurry of M&A in recent years, a deeper trend of hospital integration is underway: the emergence of alternative partnerships that secure many of the same benefits of M&A without the financial and legal commitment: Clinical affiliation, regional collaborative, accountable care organization, and clinically integrated network.

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