Virginia State Health Commissioner Marissa Levine, MD, conditionally approved Kingsport, Tenn.-based Wellmont Health System and Johnson City, Tenn.-based Mountain States Health Alliance's cooperative agreement for their proposed merger Oct. 30.
In an Oct. 30 letter to executives from both health systems regarding their application, Dr. Levine said she conditionally approved the agreement because "Southwest Virginia experiences significant challenges with respect to delivery of healthcare services and population health status." She said Wellmont and MSHA have "failed to provide meaningful, visible benefits to the people of Southwest Virginia" independently, but the commitments they've outlined in their proposed merger "will make a difference in the lives of people in the region."
Dr. Levine also noted several conditions she orders Wellmont and MSHA to abide by. Among those conditions include the provision that the health systems "shall not discontinue, repurpose, merger or align service lines or terminate employees, except for cause, during the period of time between approval of the application and the effective date of the applicants' merger."
The health systems must also submit annual baseline spending levels to Dr. Levine as well as the Tennessee health commission.
To read the commission's full letter to Wellmont and MSHA, click here.