NEW YORK CITY-In a major move that calls the future of large swaths of healthcare real estate into question, Mount Sinai Medical Center and Continuum Health Partners jointly announced Wednesday that their boards have agreed to a merger. Continuum is a network of hospitals that includes Beth Israel Medical Center in Manhattan; Beth Israel Brooklyn; St. Luke's Hospital, Roosevelt Hospital and the New York Eye & Ear Infirmary.
Upon final regulatory completion—which is expected to take place in the fall—the newly formed Mount Sinai Health System will include all of those facilities as well as Mount Sinai's campuses in Manhattan and Queens. The merged entity is being represented on the real estate front by Jonathan Serko, vice chairman at Cushman & Wakefield. No further details about plans for the buildings were available at press time, but watch for future updates.
According to the New York Times, the new organization would have more than 3,300 beds at seven campuses spread through Manhattan, Brooklyn and Queens, making it the largest hospital system in New York City—outside of the public hospital system. It would surpass the reigning giant, New York-Presbyterian Hospital, with 2,600 beds, and would become one of the country's largest nonprofit systems.
Officials told the Times that Continuum could benefit in the long run from capital improvements to its physical plant, which Mount Sinai has the resources to finance. A spokeswoman for Continuum tells GlobeSt.com that both sides of the deal declined further comment.
Dr. Kenneth Davis, chief executive of Mount Sinai, says in the Times that the merger would allow the hospitals to “be more efficient at what they do” and to make up for “the inability of the federal government or the state governments to be able to pay for the health care that people in the past have demanded.”
In the announcement, Stanley Brezenoff, president and CEO of Continuum, adds that “this combination makes readily available a more robust and multi-disciplinary network of services that neither institution could have offered independently. And the main beneficiary of this expanded care delivery system will be the tens of thousands of patients both locally and from around the globe who turn to our hospitals each year for medical care.”
The regional office of the Federal Trade Commission—which reviews antitrust issues—has already approved the merger, he continues. The only regulatory hurdles remaining were reviews by the State Health Department and the federal Department of Housing and Urban Development, concerning some hospital debt.
Continuum had been in talks with NYU Langone Medical Center, and analysts say the latter institution will likely continue to seek a new partner. Says James Tallon, president of the United Hospital Fund, in the Times, “I suspect the consolidation of systems in New York will still continue to move forward,
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
