Calif. health­care providers call off merger amid ris­ing scru­tiny

Modern Healthcare - - REGIONAL NEWS - —Alex Kacik

Santa Bar­bara, Calif.-based health­care providers Cot­tage Health and San­sum Clinic called off their pro­posed merger af­ter fight­ing reg­u­la­tory con­cerns for years, sig­nal­ing reg­u­la­tors’ in­creas­ingly crit­i­cal stance on ver­ti­cal in­te­gra­tions.

The not-for-profit health­care providers an­nounced their plans to merge in 2013, aim­ing to com­bine Cot­tage Health’s three-hos­pi­tal sys­tem with San­sum’s 23 am­bu­la­tory clin­ics and the only med­i­cal foun­da­tion in the re­gion.

Cot­tage Health, which op­er­ates the only hos­pi­tals in south Santa Bar­bara County and the Santa Ynez Val­ley, sold off an am­bu­la­tory surgery cen­ter to al­le­vi­ate the Fed­eral Trade Com­mis­sion’s con­cerns over the deal. But it was ev­i­dently not enough.

Cot­tage Health CEO Ron Werft and San­sum Clinic CEO and Chief Med­i­cal Of­fi­cer Dr. Kurt Ran­so­hoff said in a state­ment that they would con­tinue to col­lab­o­rate.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.