Three health systems have proposed plans to create a strategic affiliation with Yakima (Wash.) Valley Memorial Hospital.
The three groups that submitted proposals include Virginia Mason Medical Center in Seattle; the collaboration of Seattle-based Swedish Health Services and Renton, Wash.-based Providence Health & Services; and the collaboration of Vancouver, Wash.-based PeaceHealth and University of Washington Medicine in Seattle.
Officials said in a news release the 226-bed hospital "is in solid financial health," but they are considering a partner to help get through several challenges, including Medicare reimbursement cuts, state Medicaid funding woes and the high costs of health information technology. Medicare and Medicaid account for approximately 65 percent of Yakima Valley Memorial's revenue.
"We have discovered in this process that Memorial is an attractive partner, and we will only assume a partnership if the conditions are right and if the relationship meets the goals of Memorial's not-for-profit mission," Bill Dolsen, chairman of Yakima Valley Memorial's board of trustees, said in the release. "This decision must strengthen both Memorial and the Yakima community."
Yakima Valley Memorial executives are expected to conduct due diligence over the next nine to 12 months before arriving at a decision.
More Articles on Hospital Transactions:
State OKs Montefiore Medical Center's Purchase of Bankrupt Sound Shore System
Moody's: 5 Key For-Profit Hospital Consolidation Trends
CHE Trinity Health, St. Joseph's Hospital Call Off Affiliation