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OGH/BRMC Integration
Olean General Hospital and Bradford Regional Medical Center have signed a non-binding letter of intent to integrate the two hospitals under a new parent company. The decision to pursue this integration was approved by the boards of directors of both hospitals based on a recommendation from a steering committee that included the hospitals’ presidents, board members, and physicians. The integration will be achieved through the work of a parent company – an umbrella organization – that will oversee governance and management of the system with the goal of moving the two hospitals as close to operating as a single entity as possible, resulting in a strong, vibrant healthcare system. When implemented, this integration will represent a major step forward for healthcare delivery in Northwestern Pennsylvania and Southwestern New York, and mark a new beginning for two long-time, highly respected hospitals that share common missions, values, and cultures.
Approval and implementation of the integration is expected in about one year following a comprehensive due-diligence review by both organizations’ boards of directors, completion of all regulatory reviews and legal approvals, and the adoption of a definitive agreement.
It is important to note that this is NOT a merger of Olean General Hospital and Bradford Regional Medical Center. Both hospitals will remain separate entities with boards of directors to oversee organizational licensing requirements, quality assurance, and physician credentialing and to provide input into the development of strategic plans and operating and capital budgets.
The benefits of the proposed integration will be many. The two organizations will be better able to withstand financial pressures in a weakened U.S. economy, and to respond to financial challenges brought on by rising costs and reductions in government support and reimbursements from health insurers. The potential for improved clinical and service performance and increased business stability resulting from the integration will assure an enhanced ability to attract and retain high-quality physicians and clinical talent. A strong regional healthcare system where the member organizations increasingly operate as close to a single entity as possible will result in a more stable employment outlook for both hospitals. Finally, it is anticipated that the integration will provide significant capability to introduce new and expanded programs and services in response to regional health needs.
It is important to understand that this action is consistent with a national trend of hospitals seeking cooperative relationships and taking necessary steps to ensure their patients have access to efficient, cost-effective and high-quality care. Nearly one-half of the 4,900 hospitals in the U.S. are currently in multi-hospital system arrangements.
Timothy J. Finan will remain as President and CEO of Olean General Hospital, and George Leonhardt will continue to serve as President and CEO of Bradford Regional Medical Center. It is the expressed intent of both hospitals’ boards of directors that Mr. Finan be appointed President and CEO of the new parent company.
Clearly, this announcement signals the beginning of a new chapter in Olean General Hospital’s history. It is important to understand that this effort is being undertaken to ensure the preservation of a vibrant hospital delivery system for this region.
