Petersburg’s SRMC to be acquired by Bon Secours health system

By: Michael Campbell | Twitter: @itsthesoup
Posted: October 30, 2019 | 10:42 a.m. 

PETERSBURG – A key medical facility in Southside Virginia is slated to change ownership as Southside Regional Medical Center is set to be acquired by a health system familiar to many Virginians – Bon Secours.

In a statement this week, Bon Secours Mercy Health announced their plans to further expand their healthcare network through the acquisition of a trio of hospitals that are currently part of the Community Health System network, Southside Regional Medical Center in Petersburg, Franklin’s Southampton Memorial Hospital, and Southern Virginia Regional Medical Center in Emporia.

With the deal expected to be completed by the end of this year, Bon Secours shared, once the deal is finalized, “the addition of these three new locations will result in a stronger and broader network of care for the communities we serve in southeastern Virginia, where they will join our strong tradition of providing quality, compassionate health care for our communities.”

Additionally, Bon Secours stated all three medical centers would “transition to our faith-based ministry and become Catholic hospitals, following ethical and religious directives and guidelines.”

“This expansion of our footprint presents an opportunity for us to unite the complementary strengths of each facility with the best practices and strong foundation of a regional health system for the benefit of our community,” the international health system said. “Together, we are focused on creating a leading health care system across southeastern Virginia, capable of delivering superior quality and value, and enhancing access for growing populations.”

According to their website, Bon Secours Mercy Health, which is the United States’ fifth-largest Catholic healthcare system, operates five hospitals in the Richmond and Northern Neck areas with St. Francis, St. Mary’s, Richmond Community, and Memorial Regional medical centers in the Richmond-Metro area and Rappahannock General in Kilmarnock.

“We are very pleased to have the opportunity to add three strong, dynamic hospitals to our southeast Virginia footprint,” said John Starcher, Bon Secours Mercy Health president, and CEO. “Nothing is more important than the health and well-being of the communities and patients we serve, and we look forward to welcoming Southside Regional Medical Center, Southampton Memorial Hospital and Southern Virginia Regional Medical Center into our compassionate ministry. We have a unique opportunity to find synergies and work together to serve others.”

Following news of the acquisition, Trent Nobles, Southside Regional Medical Center’s CEO said the hospital is looking forward to aligning with the Bon Secours Mercy Health system.

“Aligning with Bon Secours Mercy Health will allow us to be part of a larger network of hospitals in Virginia,” he remarked. “Our hospitals have shared values and a commitment to providing our patients safe, quality care from compassionate clinicians. We are very excited about this partnership.”

In their third-quarter earnings report, Community Health Systems, the soon-to-be-former owners of SRMC, announced they had completed nearly a dozen hospital divestitures during the first nine months of 2019, adding they are continuing to “[pursue] additional interests for sale transactions, which are currently in various stages of negotiation with potential buyers” and CHS “continues to receive interest from potential acquirers for certain of its hospitals.”

“We believe these investments, along with recent divestitures and ongoing operating efficiency initiatives, have positioned the Company for continued improved performance,” Wayne T. Smith, chairman, and chief executive officer of Community Health Systems said in their earnings report. “As we move forward, we expect a good finish to this year and believe we are well-positioned to deliver a strong performance in 2020.”

According to their earnings report, during the first nine months of this year, CHS’s net operating revenue totaled $9.9 billion, down seven percent from the same time last year, where those revenues totaled $10.7 billion. Additionally, their consolidated operating results for the opening nine months of 2019 saw CHS have an 11 percent drop in overall admissions when compared to 2018, while same-facility revenues during the first nine months of the year rose four percent over last year’s totals.

As of the most recently available information on their website, CHS operates just over 100 hospitals in 18 states, spanning as far north as Pennsylvania, south through the Gulf Coast and southwestern United States, and the country’s far northern reaches in Alaska. With this transaction, Community Health Systems will no longer have a presence in Virginia once the deal is completed. Currently, CHS has its largest presence in Florida, where the healthcare system operates 16 hospitals.

As for Bon Secours Mercy Health, this acquisition of three CHS facilities comes just over a year after Bon Secours Health System and Mercy Health merged to become one of the country’s largest health systems made up of 60,000 employees and over 1,000 sites of care in the United States and across the Atlantic Ocean in Ireland, including 48 hospitals, with much of their American footprint found in Ohio and Kentucky.

Locally, the health system’s leadership said they are excited about the prospect of bringing their standard of care to Southside Virginia.

“Bon Secours Mercy Health is strategically focused on how we can best fulfill our Mission and meet the needs of our patients and communities,” said Starcher. “Southeastern Virginia is a very attractive growth market, and we look forward to continuing to invest in the health and well-being of area residents while ensuring our facilities are places where associates want to work, clinicians want to practice, people seek wellness and communities thrive.”

The sale is expected to be completed by the end of the year.

Copyright 2019 by Womack Publishing
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