Carolina Pines Regional Medical Center is owned by Capella Healthcare. (handout)
RegionalCare Hospital Partners and Tennessee-based Capella Healthcare have revealed plans to merge. The two privately-owned companies made the announcement in a statement Tuesday.
The new company will be re-branded RCCH Health Partners, which stands for RegionalCare Capella Healthcare, and will encompass 18 hospital campuses in 12 states. Its ranks will swell to 13,000 employees, 2,000 affiliated physicians and $1.7 billion in combined revenue.
The deal is expected to be finalized in second quarter 2016, pending the standard regulatory reviews and approvals. The specific terms of the deal were not disclosed.
"The merger of our two companies will benefit the communities and patients we jointly serve and better position us for the future," said Marty Rash, current Board Chair and CEO of RegionalCare. "By creating a single, stronger organization, we'll have greater scale and stability as well as an expanded geographical reach. As we continue to grow the regional systems we have in place now and to partner with new communities, we'll continue our progress in meeting the triple aim of improving the experience of care for our patients, expanding access, and providing more efficient care."
Rash will step into the role of Executive Board Chair for the new company. Michael Wiechart, who currently serves as Capella's President, CEO and Vice Chair of the Board, will lead the newly-formed RCCH Health Partners as President/CEO and will also serve on the RCCH Board of Directors.
"This is a strategic partnership that will enable both of our companies to enhance service and support to our existing community hospitals while creating a new entity that is even more attractive – and better positioned - for future partner communities," said Wiechart. "Our companies already share a similar mission and values, including a commitment to providing high quality, compassionate care and building strong regionally-focused delivery systems. Additionally, we each place priority on local leadership with all-local Boards of Directors and a decentralized management approach."
Capella Healthcare was founded in 2005 and operates ten acute-care and specialty hospitals in Arkansas, Oklahoma, Oregon, South Carolina and Washington.
RegionalCare was founded in 2009 and operates eight "non-urban" hospitals in Alabama, Arizona, Connecticut, Iowa, Montana, Ohio and Texas.
RegionalCare said despite the merger, day-to-day operations at the both company's facilities will not be impacted.