Merger and acquisition transactions can often lead to job cuts, but that is not anticipated to be the case with Sayre, Pa.-based Guthrie Clinic's acquisition of the Our Lady of Lourdes Memorial Hospital system based in Binghamton, N.Y.
"There are no job cuts anticipated, and we are really excited to welcome them," Guthrie Clinic CEO Ed Sabanegh, MD, said of workers at Lourdes. "We hope to be adding jobs."
The deal, expected to be finalized in early 2024, has been about a year in the making, but its roots go back almost two years, when Guthrie initiated a strategic plan to see how the five-hospital system could better serve its communities, Dr. Sabanegh told Becker's.
Working with "like-minded" people and organizations such as Lourdes is key to any expansion of Guthrie, he added.
"Our role is really about improving the region's care quality, making sure people don't have too far to travel," he said. "We want to keep care local and have it at the highest quality of clinical performance."
Financial terms of the deal were not disclosed, but the transaction involves the transfer of ownership of the Our Lady of Lourdes system from St. Louis-based Ascension.
"The parties have agreed to a framework for the purchase price, but we are not able to disclose the amount currently," a Guthrie spokesperson told Becker's.
Many details had already been worked on over "quite a bit of time" to help finalize the deal, Dr. Sabanegh said.
The Our Lady of Lourdes system, which includes 24/7 emergency and acute care, a network of primary care providers and ambulatory surgery, among others, could be one of several systems Guthrie is looking at, even if that may not involve acquisitions and more likely be in the form of strategic partnerships or affiliations.
"We are always open to talking to like-minded people," Dr. Sabanegh said.