Dive briefs:
- Louisiana-based Ochsner Health has officially merged with Rush Health Systems, and the combined system will have seven hospitals and more than 30 clinics in eastern Mississippi and western Alabama, according to a release Monday. I was.
- According to the release, the new name and branding are being rolled out at regional hospitals under the new brand Ochsner Rush Health. Ochsner Rush Health has 250 staff and contract physicians and 95 advanced healthcare providers.
- According to the release, Ochsner Rush Health is raising the minimum wage to $12 an hour, affecting more than 400 employees and investing $1.5 million.
Dive Insight:
The two systems have signed a letter of intent to merge in June 2021. Once the merger is complete, the system will expand access to specialty and subspecialty services, potentially allowing patients to access care closer to home, the company said.
Ochsner, which had a leading foothold in the Southern Gulf prior to the merger, will add seven more hospitals to the 40 hospitals and over 300 medical and emergency care centers that existed throughout the region prior to the merger.
Ochsner hopes the deal will enable it to expand its technical capabilities and digital products, including telemedicine, digital surveillance and artificial intelligence, along with its clinical research network, across Ochsner Rush facilities.
Ochsner reported revenue of $5.9 billion and operating income of $138 million for fiscal 2021.
The Ochsner Rush merger is complete because the Federal Trade Commission has blocked many deals so far this year, focusing on hospital mergers and the potential to reduce competition.
Kaufman-Hall’s latest quarterly M&A report shows that M&A activity has been subdued since last year, but the size of the deal is on the rise as mega-mergers tend to be underway with more than $1 billion in annual revenue for sellers. expanding.
