Montefiore plans to acquire 3 New York hospitals
The system is looking to add Garnet Health. The organizations are hoping to reach a definitive agreement by the end of the year.
Montefiore Health System is looking to add another New York system to the organization.
Montefiore Health System is in talks with Garnet Health about acquiring the system and its three hospitals.
Montefiore and Garnet Health have signed a letter of intent to explore an affiliation. The two organizations announced the plans last week.
Regulators need to approve the transaction. Montefiore and Garnet Health are hoping to complete due diligence and sign a definitive agreement by the end of 2025.
An academic health system, Montefiore operates 10 hospitals and more than 200 outpatient care sites. If the deal is finalized, Montefiore's footprint would grow to 13 hospitals.
Garnet is based in Middletown, N.Y., about 60 miles northwest of New York City. Garnet operates three hospitals with a total of 552 beds, along with clinics and outpatient facilities. The system serves 500,000 residents in Orange, Sullivan and Ulster Counties.
Jonathan Schiller, president and CEO of Garnet Health, said merging with Montefiore would lead to better healthcare services and “reflects our continued commitment to ensuring the long-term strength and sustainability of healthcare in our region.”
“Joining Montefiore Health System will enable us to bring expanded resources and clinical capabilities to our patients while preserving the community-focused care that has defined Garnet Health for generations,” Schiller said in a statement.
In June, Garnet announced that it was laying off 42 staff, citing the difficult financial climate. At the time of the staff cuts, Garnet said it was committed to a path toward a stable financial future.
Garnet has more than 4,000 employees and 850 medical staff members.
Dr. Phillip O. Ozuah, president and CEO of Montefiore Einstein, said he’s enthusiastic about the partnership with Garnet Health.
“Montefiore Health System knows what it takes to deliver excellent care at a community level while offering access to world-class, academic medical expertise,” Ozuah said in a statement. “We look forward to the opportunity to welcome Garnet Health into the Montefiore family. Together, we share a deep commitment to local healthcare access, clinical excellence, and community care.”
New York has seen a number of hospital deals in the past two years.
The Westchester Medical Center Health Network and Bon Secours Mercy Health announced last month that they are ending a decade-long joint venture in the operation of the three hospitals.
Westchester is now assuming full ownership of the three hospitals in New York’s Hudson Valley: Good Samaritan Hospital in Suffern, N.Y.; Bon Secours Community Hospital in Port Jervis, N.Y., and St. Anthony Community Hospital in Warwick, N.Y.
Northwell Health completed the acquisition of Nuvance Health in May to form a combined system with 28 hospitals and $22.6 billion in revenue. Nuvance operates seven hospitals in western Connecticut and New York’s Hudson Valley.
Two central New York systems, Arnot Health and Cayuga Health, completed their merger in January. The combined organization is now known as Centralus Health.
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