In the Headlines:

Hospital and health system news from across the country

Editor’s note: The following news has been compiled by Major Accounts Exchange (The MAX), health care’s leading provider of real-world intelligence for the supply chain. The MAX serves as a Supply Chain “Community” where senior-level executives can easily Find, Digest, and Act on vital business and market intelligence. For the latest news impacting the supply chains of over 1,200 IDNs and all the GPOs, visit

Washington: Providence Health & Services sees decreased operating income in 2013
Providence Health and Services (Renton, WA) reported lower-than-expected operating income for 2013 due to flat inpatient volume and an adverse payer mix. The system reported $37.7 million in net operating income for 2013, ended December 31, which was 81.5 percent below the $204.1 million it earned in 2012. Revenue increased about five percent to $11.1 billion, from $10.6 billion in 2012. Inpatient volume was nearly flat, declining 0.1 percent, but commercial volume was 4.9 percent lower than expected. Providence instead saw a greater percentage of Medicare and Medicaid patients.

Michigan: Three health systems plan merger
Beaumont Health System (Royal, Oak, MI), Botsford Health Care Continuum (Farmington Hills, MI), and Oakwood Healthcare System (Dearborn, MI) signed a LOI to form a new IDN. Under the proposal, the three systems would pool their assets and operations into a single organization designed to improve patient access to care and take advantage of economies of scale. It would function under a unified leadership structure initially led by Beaumont Health CEO Gene Michalski. The organizations are currently undergoing due diligence procedures and the merger will require regulatory approval.

Pennsylvania: DLP Healthcare signs LOI to acquire Conemaugh Health System
Duke Lifepoint Healthcare (DLP Healthcare) (Brentwood, TN) signed an LOI to acquire Conemaugh Health System (Johnstown, PA). Under the proposed deal, DLP Healthcare will invest more than $500 million in Conemaugh over the next 10 years, retain its existing employees, and allow its board of directors to control local operations. A Conemaugh spokesman said the acquisition was part of the system’s plan to partner with a larger organization to better position itself for changes in healthcare delivery. Pending due diligence and regulatory approvals, the acquisition is expected to close in fall 2014.

North Carolina: Carolinas HealthCare System opens Behavioral Health Davidson
Carolinas HealthCare System (Charlotte, NC) opened Carolinas HealthCare Behavioral Health Davidson (Davidson, NC) after slightly less than two years of construction. The $36 million, 67,000-sq-ft hospital features three 22-bed units, two dedicated to mood disorders, with another reserved for patients suffering from depression and substance abuse. The campus also features a 10,000-sq-ft medical office building for outpatient mental health care. Carolinas HealthCare expects the hospital to operate at a loss, but the psychiatric ER and other services should ensure patients receive appropriate care and reduce costs at other Carolinas HealthCare facilities.

Washington DC: US Naval Hospital Guam begins transition to new $158M facility
US Military Health System (DoD) (Washington, DC) and US Navy Bureau of Medicine and Surgery (BUMED) (Falls Church, VA) announced the transition from US Naval Hospital Guam (FPO, AP, GU) to the US Naval Hospital Guam Replacement (Agana Heights, Guam) will begin on April 11 and run through April 20, 2014. The new $158 million, 281,000-sq-ft, 42-bed hospital features four operating rooms, two c-section rooms, and improved diagnostic and ancillary services including MRI and Cat scanning suites.

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