Maryland-based Anne Arundel Health System has signed a definitive agreement, along with Doctors Community Health System, to merge and form a new entity, with the new health system as yet unnamed.
While full integration is expected to take a couple of years, a name for the new health system will be unveiled this summer.
WHAT'S THE IMPACT
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While the health system's official name is still being determined, the combined entity will be known as the Greater Maryland Health System.
According to a report in the Capital Gazette, The Maryland Health Care Commission deemed that the proposed health system provided timely notice and all of the requisite information, and thus did not require any additional certification or regulatory review.
Victoria Bayless, president and CEO of AAMC, will serve as chief executive officer of the new system. Paul Grenaldo, who served as chief operating officer at DCHS since 2010, will succeed Philip Down as president of DCHS. Down will serve as strategic advisor to the new health system, according to a press release.
Bayless previously told the Gazette the new system is expected to create about 500 new jobs. Financial terms of the deal were not disclosed.
ON THE RECORD
"The new health system will reimagine community care, improving access and population health while expanding services throughout Maryland," said Bayless. "We will continue our community focus and provide the personalized and localized care that our patients need. We want to ensure that the care our patients receive is from those who know the region and have a longstanding commitment to meeting the needs of our communities."
"This is an amazing time for healthcare at each entity and in our communities," said Grenaldo. "With Doctors Community Health System and Anne Arundel Medical Center engaged as partners in this integration process, we have an amazing opportunity to design a system that is keenly focused on addressing the evolving medical needs of area residents and contributing to the ongoing development of a highly talented workforce. Working together, we will reach even higher levels of excellence throughout Maryland."
THE LARGER TREND
The trend of mergers between large healthcare provider organizations continues, as the average size in revenue of sellers -- defined as the smaller of two organizations in a transaction -- reached $409 million in 2018, according to a January Kaufman Hall report.
This is the highest figure seen since Kaufman Hall began tracking this metric in 2008. It also represents a compound annual growth rate of almost 14 percent in the average size of sellers by revenue since 2008.