Sansum Clinic and Cottage Health System have entered into a letter of intent to develop an integrated health system.
The transaction would bring the three hospitals of Cottage Health System and Sansum Clinic's 23 sites together.
"Cottage Health System will serve as the sole member of the Sansum Clinic. Sansum will continue to operate as an outpatient medical foundation," said Cottage President Ron Werft.
Timing is important with this move.
"The Affordable Care Act and the expansion of medical and the changes we anticipate really creates the need for hospitals and physicians to partner," said Werft.
As part of the proposed deal, Cottage would assure the availability of capital needed to expand health care services for the community through the work of Sansum Clinic and its affiliated physicians.
"The communities we serve and the patients who entrust their care to us would be the real beneficiaries of this merger," said Kurt Ransohoff, M.D., Chief Executive Officer for Sansum Clinic. "Our ability to work together across the inpatient and outpatient care continuum is one of the many exciting parts of this proposed collaboration," he added.
"Hopefully it will make it good for everyone," said resident Theola Munoz. "Hopefully with that combination it will provide more services for those who can’t afford it."
In front of Cottage Hospital resident Jeanne Surver said,"we have what we have and to have more choices is good but I am happy with the healthcare choices. In terms of the health care I have had at Cottage has been outstanding."
The parties intend to complete the agreement by October 1, 2013.