Friday, December 4, 2009

Southern Tier hospitals finalize affiliation agreement

Central NY Business Journal reported that after exploring their options for 17 months, two Southern Tier hospitals finalized an affiliation agreement that's the next step in an eventual merger.

In a statement released today, the board of directors of Ira Davenport Memorial Hospital in the town of Urbana announced it reached an agreement on affiliation with Arnot Ogden Medical Center of Elmira.

The agreement includes the Fred and Harriet Taylor Health Center (Davenport & Taylor).
The hospitals, which have been discussing an affiliation for nearly two years, are located about 40 miles apart.

Under the agreement, formally reached during the final week of November, Arnot Ogden will appoint a board including representatives from both hospitals to oversee operations at Davenport & Taylor.

In addition, the new Davenport & Taylor board will implement a management-services agreement with Arnot Ogden.

James Watson, current CEO of Davenport & Taylor, will become an employee of Arnot Ogden and report directly to the new board.

To close the merger, the hospitals need to complete a series of filings with the New York State Department of Health, finish corporate restructuring, and wrap up medical services agreements, according to Arnot Ogden. Read more here.

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