Virginia (Minn.) Regional Medical Center's Hospital Commission and the city council will vote in the next few weeks on whether the medical center should affiliate with Duluth, Minn.-based Essentia Health, according to a Duluth News Tribune report.
According to the report, Virginia Regional executives were considering a merger because the hospital has been losing money since before 2010. While it broke even in 2010 and last year finished in the black, hospital executives are still skeptical. They believe that slight profits will not sustain the hospital, which needs $36 million in infrastructure improvements, according to the report.
The Hospital Commission received a final proposal for an affiliation from Essentia on May 23. After a public forum on June 7, the commission will vote on June 11 and the City Council on June 12.
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According to the report, Virginia Regional executives were considering a merger because the hospital has been losing money since before 2010. While it broke even in 2010 and last year finished in the black, hospital executives are still skeptical. They believe that slight profits will not sustain the hospital, which needs $36 million in infrastructure improvements, according to the report.
The Hospital Commission received a final proposal for an affiliation from Essentia on May 23. After a public forum on June 7, the commission will vote on June 11 and the City Council on June 12.
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