Merger | Vandalia Health and Davis Health System

To assess the degree of similarity between the two health systems, Vandalia Health & Davis Health System, we conducted an analysis of the largest hospital in each system—Charleston Area Medical Center and Davis Medical Center. The analysis reveals that Charleston Area Medical Center and Davis Medical Center have a SimilarityIndex™ M&A Score of 61.70, or a distance of 38.30. Said differently, using Charleston Area Medical Center as the index hospital, Davis Medical Center is the 991st most similar hospital out of the 2,299 hospitals in the national analysis, revealing that there are many other hospitals that are operationally, financially and competitively more similar. An M&A strategy driven by clinical, operational, and financial similarity would lead to different partners for each system. Davis Medical Center’s data is sourced from FY 2020 Cost Reports, and Charleston Area Medical Center’s data is sourced from FY2021 Cost Reports.