An independent analysis found taxpayers and public owners of Bert Fish Medical Center in New Smyrna Beach, Fla., have the most to gain financially from merging with Naples, Fla.-based Health Management Associates as opposed to Daytona Beach, Fla.-based Halifax Health, according to a report by the Daytona Beach News-Journal.
The 112-bed Bert Fish has been grappling with partnership selections for a possible merger since fall 2012. In 2010, a judge cancelled its merger agreement with Florida Hospital in Orange City after ruling the hospital had not complied with open meetings laws. In April 2013, Bert Fish narrowed its prospective partners to for-profit Health Management and public-owned Halifax.
The board-commissioned analysts determined choosing Health Management would yield net proceeds of $43.1 million, versus $28.9 million from Halifax. Those figures include both explicit and implicit investments expected to occur as part of each proposed merger. Halifax promises to halve the hospital tax and would provide the most relief to taxpayers in the first seven years, but Health Management's pledge to stop accepting tax revenue after seven years represents the greatest long-term benefit to taxpayers, according to the report.
Board members of Bert Fish said the financial benefits of a merger are not the sole deciding factor in their selection of a partner and that hospital culture, governance, staff approval and quality factors would also be important considerations, according to the report.
More Articles on Hospital Mergers: