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Scripps Health, El Centro Regional Medical Center to Discuss Potential Transaction

The city of El Centro, Calif., has entered into a 90-day exclusive negotiating agreement with San Diego-based Scripps Health concerning the health system's potential acquisition and management of El Centro Regional Medical Center.

Both Scripps and ECRMC stand to benefit from the acquisition, says Scripps President and CEO Chris Van Gorder. He says the hospital will benefit from Scripps' expertise as a major health system, and both organizations can gain economies of scale from merging. Financial details of the acquisition were not disclosed.

Scripps officials visited the 165-bed, city-owned hospital and thought it was a good cultural match for the health system, he says.

"As commander for the San Diego County Sheriff’s Department Search and Rescue team, I've sent a number of patients to them over the years," Mr. Gorder says. "There are quality doctors, quality administrators and quality employees out there."

In May, the El Centro City Council voted unanimously to seek an affiliation partner for ECRMC to improve quality of care by enhancing services and increasing access points, as well as eliminate future liability for the city, according to a news release.

Officials reached out to more than 30 organizations before deciding to enter into negotiations with Scripps. In September, the hospital's CEO, David Green, wrote in a letter to community members that ECRMC would choose a partner based on factors such as the ability to recruit physicians and practitioners to the area, grow specialties and other services, provide capital, help in the supply chain and share best practices to improve quality.

More Articles on Hospital Acquisitions:
El Centro Regional Medical Center Nears Affiliation Deal
Prime Healthcare, Saint Clare's Health System Merger Delayed
LifePoint Adds Fauquier Health 

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