MUNCIE, IN – Two major central Indiana health systems are moving toward a merger that could bring financial benefits to all five hospitals involved.
The Cardinal Health System, based in Muncie, Ind., and Indianapolis-based Clarian Health have signed a letter of intent to merge after Clarian’s leadership invited CHS and its affiliate hospitals to join Clarian’s statewide system.
“Ball Memorial and Blackford Community hospitals (will) join Methodist Hospital, Riley Hospital for Children and Indiana University Hospital as part of the Clarian family of hospitals,” said Daniel F. Evans, Jr., president and chief executive officer of Clarian.
Evans said Ball Memorial and Blackford Community hospitals – formerly part of the CHS system – would keep their names after this month’s merger, and citizens in the Muncie area would retain significant governance over the hospitals.
He said CHS would also have the opportunity for a closer working relationship with the Indiana University School of Medicine, which is based in Indianapolis.
According to terms of the merger, all CHS assets, including interests in various local providers of healthcare and related services, will be combined with those of Clarian, and Clarian will continue to operate BMH as a full-service acute care hospital and BCH as a critical access facility.
Clarian will also add $25 million to the BMH Foundation, boosting it to more than $75 million. The foundation supports community health initiatives in the Muncie area.
“This puts us in a position of strength to continue to grow as a regional referral center,” said Kelly Stanley, president and chief executive officer of CHS.
Brent Batman, president of Ball Memorial Hospital, said the merger makes sense from a financial perspective, as consolidation of the two organizations will bring benefits through the economies of scale resulting from shared purchasing contracts, integrated information systems and coordinated physician recruitment.
“Working together, Clarian and CHS will be able to improve accessibility, availability and the continuity of healthcare for the people of this region,” Batman said.
Clarian has committed to making investments in clinical and operational technologies at the two CHS hospitals. These include funding to complete capital construction projects, renovation of the surgical facilities and a helicopter pad on the BMH campus.