Official talks between the two parties stretched for four months, the Toledo Blade reported, and culminated with an agreement for St. Luke’s to join ProMedica sometime this summer, according to a joint statement.
St. Luke’s had struggled financially in recent years as it had been shut out of lucrative insurance contracts, according to the Blade. After it joins ProMedica, 314-bed St. Luke’s will retain its management and name. Further details, including whether any of St. Luke’s 1,500 employees will be let go, haven’t been announced.
Over the last year, St. Luke’s has had discussions about joining other health systems, including the University of Toledo Medical Center. The hospital had also attempted to negotiate more favorable health insurance contracts in a bid to remain independent.
ProMedica is a nonprofit that was formed in 1986. It operates 10 hospitals in northwest Ohio and southeast Michigan. Earlier this month, it struck an academic partnership with the University of Toledo in which the two will collaborate on research and residency programs.
Independent hospitals have struggled in recent years as they try to fight off bigger, better-financed competitors. The strength that comes with being part of a larger chain often allows hospitals to negotiate better deals with insurers and suppliers.
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