Putnam, Conn.-based Day Kimball Healthcare will get back on its feet again after an acquisition deal fell through, the system's CEO said.
The health system, which operates its flagship 104-bed Day Kimball hospital as well as a medical group, home care, hospice and palliative care, was due to be acquired by Covenant Health, a Tewksbury, Mass.-based system. But Covenant suddenly called off the deal March 13, saying it came across previously unforeseen financial challenges which prevented the union.
Day Kimball admitted it was shocked after multiple years of negotiation with Covenant, but that shock has died down, and the system is now looking for alternative partnerships.
"We still see that partnership is vital for us," Kyle Kramer, CEO, told Becker's. "Unquestionably, our commitment is to continue moving forward, and we think that we have made significant improvements in the past several years as we explored that affiliation process with Covenant that make us a more attractive partner."
The split with Covenant came less than a month before a public meeting regarding the partnership was due to take place. The reason behind the failed deal had nothing to do with any concern Covenant as a Catholic-based health system might interfere with women's reproductive services, Mr. Kramer reiterated.
"It truly had nothing to do with anything related to ethical or religious directives, which we had solutions for," he said. "It really came down to the financials."
For now, Day Kimball will continue its commitment to the community while looking for a possible new partner. Whatever eventually transpires, Mr. Kramer said Day Kimball will remain a strong presence locally.
"We have a wonderful team, and it is that team that will continue to carry us forward," Mr. Kramer said. "We move forward proudly, we will inevitably continue to be here, and we will be successful."