Just months after NYU Langone and Lutheran Medical Center finalized and announced their affiliation in early April, the two are moving forward with a full-asset merger, contrary to original plans.
A press secretary for NYU told this paper that, as of April 1, NYU Langone Health System, a New York not-for-profit corporation, had become the active parent of NYU Lutheran and the passive parent of NYU Hospitals Center (NYUHC).
As of the end of July, she disclosed, NYUHC is in the process of gaining approval from the Public Health and Health Planning Council (PHHPC) for a full-asset merger of NYU Lutheran Medical Center with and into NYUHC – the successor corporation.
According to the formal Certificate of Need provided to us by NYU, officials at both hospitals “had not initially planned to pursue a full-asset merger within any specific time period,” though, “as efforts to integrate clinical programs and corporate services progressed, it has become evident that the most optimal way to expedite the growth of NYU Lutheran as a premier site for high quality medical care in Brooklyn and to address the increasing financial challenges it faces is to pursue a full-asset merger.”
The merger would save the Sunset Park hospital a pretty penny, according to the document.
Officials anticipate that the merger would save NYUHC close to $57 million dollars a year through efficiencies in such areas as IT, patient care management and controlled care contracting. In addition, the merger would bring to the combined operations discounted pharmacy benefits, an improved credit rating, and more.
Perhaps the biggest benefit would be the acceleration of the hospitals’ Commitments – a collective of infrastructure projects that have yet to be funded.
“With the savings NYUHC anticipates it will realize from a full-asset merger, NYUHC will be able to expedite implementation of the Commitments and pursue other initiatives,” the document states.
“This is just the next step in our shared mission to expand high quality healthcare services to our Brooklyn communities,” said Andrew Brotman, MD, vice dean and senior vice president of clinical affairs and strategy at NYU Langone Medical Center in a statement.