Irving, N.Y.-based TLC Health Network confirmed plans to merge with Dunkirk, N.Y.-based Brooks Memorial Hospital and affiliate with Buffalo, N.Y.-based Kaleida Health.
The plans come after TLC filed for Chapter 11 bankruptcy in 2013. In a news release, TLC said it anticipates exiting bankruptcy by next month and has amended its transformation plan to be part of a larger affiliation with the Brooks merger and future affiliation with Kaleida Health.
"Similar affiliations have become the pathway chosen by many smaller rural hospitals in order to survive," TLC wrote. "The challenges faced included declining and fluctuating patient volume, reduced reimbursement, physician and staff shortages, regulations, competition, declining populations and older physical facilities with fixed overhead. TLC supported the intention of larger systems to create access to quality care where patients live and to keep services where they are needed."
The organization added while it has been able to maintain quality programs during bankruptcy, it ultimately determined the merger with Brooks and affiliation with Kaleida was necessary from a financial standpoint. The merger with Brooks is expected to be completed within the next few months.
To prepare for the merger, TLC said its board approved developing a management agreement with Kaleida to oversee day-to-day operations.
"This will be effective shortly consistent with the bankruptcy exit and will result in further savings and efficiencies," the organization added.
After the merger, TLC and Brooks together will be known as Brooks-TLC Hospital System. There will be two main campuses in Fredonia and Irving, N.Y.
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