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St. Peter’s, Ellis hospital systems agree to merger proposal

St. Peter’s Health Partners and Ellis Medicine have signed a non-binding letter of intent to merge operations, multiple sources have confirmed.

The two organizations, based in Albany and Schenectady, are among the region’s three largest hospital systems, the other being Albany Medical Center.

Born of mergers themselves, St. Peter’s and Ellis have operated independently of each other for over 100 years. They have, however, collaborated on a number of projects over the years, including joint ventures designed to lower health care costs and reduce avoidable hospital admissions in the region.

On Wednesday, St. Peter’s president and CEO Jim Reed sent a letter to colleagues announcing the intent to “integrate,” saying it signifies the “next logical step” in the organizations’ longstanding collaboration.
 
“Our two organizations share a vision for a more fully integrated, region-wide approach to care that aims to improve the health of our neighbors; embraces new models such as value-based care; and lowers overall health care costs for our community,” he wrote.

With the signing of a letter of intent, St. Peter’s and Ellis will now begin the process of developing an organizational structure, he said. A final agreement will require approval by the boards of both organizations, as well as regulatory agencies such as the state Department of Health.

There is no specific time frame for completion, Reed said, but added that “the rapid nature of change in health care demands expediency.”
 
“I would also like to underscore that, as SPHP and Ellis evaluate a path forward, it is with an eye toward respecting the heritage of all the institutions that make up SPHP and Ellis Medicine, while expanding access to care and improving outcomes for the Capital Region community,” he said.

Both Ellis and St. Peter’s health systems were created from mergers that occurred this century, but their forerunners have roots dating back to the 1800s.


The original Ellis Hospital dates back to 1885, when the Schenectady Free Dispensary opened on lower Union Street with just five beds. It grew and relocated over the years, eventually occupying a plot at the corner of Nott Street and Rosa Road. In 2006, a state commission ordered the restructuring of hospitals statewide, and Ellis Hospital, the old St. Clare’s Hospital on McClellan Street (now an outpatient center) and Bellevue Woman’s Center in Niskayuna consolidated to become Ellis Medicine. A Clifton Park urgent care location was constructed in 2012.

St. Peter’s Health Partners, which is privately owned by national Catholic health system Trinity Health, formed in 2011 from a merger of three local health systems: Northeast Health, St. Peter’s Health Care Services and Seton Health. Four legacy hospitals in Albany and Troy came with the package — St. Mary’s, which opened in 1848; Albany Memorial, which opened in 1868; St. Peter’s, which opened a year later; and Samaritan Hospital, which opened in 1898. Together, they are certified to operate over 850 beds.

At just 438 beds, Ellis remains the smaller of the two and further consolidations have been explored over the

CorroHealth Emerges as a Leader in Healthcare Reimbursement Solutions, Following Merger of Four Industry Players

Four healthcare services and technology organizations have launched under a combined brand—CorroHealth. TrustHCS, Visionary RCM, T-System and RevCycle+ joined forces to provide a greater breadth of reimbursement cycle, risk adjustment and quality solutions to health systems and payers. Global investment firm The Carlyle Group (NASDAQ: CG) owns a majority stake in CorroHealth, with Cannae Holdings, Inc. (NYSE: CNNE), Sanaka Group, and affiliates of TripleTree Holdings also serving as investors.

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Patrick Leonard serves as CEO of CorroHealth. (Image: CorroHealth)

CorroHealth—driven by helping clients navigate regulatory and compliance complexities to ease physician burdens and improve financial outcomes—emerges at a time when financial health is particularly important for health systems and payers.

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The four legacy company names will remain through the end of 2020 with a final move to the CorroHealth name across all companies beginning Jan. 1, 2021.

Equity capital for the investment came from the Carlyle Equity Opportunity Fund II that makes majority and strategic minority investments primarily in the U.S. in targeted industries, including healthcare.

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Our core purpose is to help you exceed your financial health goals. Across the reimbursement cycle, our scalable programs and clinical expertise help solve programmatic needs. Enabling our skilled domestic and global teams with leading technology allows analytics to guide our solutions and keeps us accountable to your goals. For both health systems and plans, we navigate regulatory and compliance complexities, ease physician burdens and improve financial outcomes. We consistently deliver the right solutions at the right time.

For additional information about CorroHealth, please visit www.CorroHealth.com.

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Contacts

Sara Payne,