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Three Maryland Hospitals Announce Strategic Discussions for Potential Alliance

January 24th, 2013 by WCBC Radio

Three independent Maryland health systems announced today the signing of a
memorandum of understanding to enter into strategic discussions of collaboration and affiliation. Chief
executive officers of Frederick Regional Health System, Meritus Health and Western Maryland Health
System and their respective boards of directors have agreed to study and discuss opportunities that
will allow each organization to enjoy continued success in meeting the challenges of the current and
future health care environment. Thomas A. Kleinhanzl, President and CEO of Frederick Regional Health
System, states, “The forces shaping health care are challenging for independent community hospitals
and many are creating alliances for continued stability. Our collective goal is to explore options in order
to maintain high quality and cost-effective health services for our communities.”

The proposed alliance would provide a sound business structure for developing new services and
improving infrastructures. Joseph P. Ross, President and CEO of Meritus Health, states, “We are
beginning discussions that will focus on our shared vision of clinical collaboration, physician services,
support services and shared resources to enable us to deal successfully with today’s health care
challenges. Some of the issues our organizations must manage include health reform, the next fiscal cliff
and financial pressures on both a national and state level, and the intensified health needs of an aging

Details of the proposed affiliation will be closely explored through this study. Barry P. Ronan,
President and CEO of Western Maryland Health System, concurs, adding, “We are three not-for-profit
organizations that are deeply -rooted in our communities. We share a common set of values, with rich
traditions of service and support, and we are exploring ways to work together to continue to best serve
the health needs of our communities.”

The group will undertake a feasibility study with the Berkeley Research Group (BRG) that will explore the
merits of affiliation and collaboration of the three health systems. It is expected to take several months
to receive a final recommendation.


Frederick Regional Health System operates health care facilities and services in Frederick County,
Maryland, including Frederick Memorial Hospital. Meritus Health operates health care facilities and
services in Washington County, Maryland, including Meritus Medical Center. Western Maryland
Health System operates health care facilities and services in Allegany County, Maryland, including
Western Maryland Regional Medical Center.


Listen to a report from WCBC's Bryan Gowans:

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