The Johns Hopkins Health System is acquiring Sibley Memorial Hospital in Washington, D.C., a move designed to boost the Baltimore-based health system’s exposure in the nation’s capital and give Sibley some much-needed resources and financial stability.
The deal, approved Wednesday by Sibley’s board and Thursday by the D.C. State Health Planning and Development Agency and the Federal Trade Commission, involves no exchange of money or assets nor any changes in staff of day-to-day operations.
Instead, while the 328-bed hospital, located in northwest Washington D.C., becomes a subsidiary of one of the nation’s leading medical schools, the Johns Hopkins Health System will gain an important foothold in a region now dominated by MedStar Health, which owns Washington Hospital Center and Georgetown University Hospital.
The region, Johns Hopkins officials point out, includes a large number of government employees and diplomatic personnel and the potential for international business.
Sibley, which sees the deal as providing long-term financial stability and a potential increase in patients, will become part of a well-regarded network that includes Howard County General Hospital in Columbia, Md., and Suburban Hospital in Bethesda, Md. (which Johns Hopkins acquired last year). The hospital will also gain access to expanded cancer and geriatric facilities, a new women’s healthcare program and more opportunities for clinical trials.
Johns Hopkins, which also owns Johns Hopkins Hospital and Johns Hopkins Bayview Medical Center in East Baltimore, is also finalizing plans to acquire All Children’s Hospital & Health System in Tampa, Fla.
The deal “permits Hopkins to realize a regional integrated network of high-quality health-care facilities that serve residents in their communities,” Johns Hopkins spokesman John Lazarou said in a statement.
“Sibley is a highly regarded hospital and a wonderful community asset,” said Ron Peterson, president of the Johns Hopkins Health System, in responses to written questions from the Washington Post. “We fully expect that our relationship will continue to improve the brand image of Johns Hopkins Medicine.”
According to the Post, John Hopkins officials said they have no plans to expand into nearby northern Virginia or acquire other financially troubled hospitals, like United Medical Center in Washington D.C. or the Dimensions Healthcare System in Prince George’s County.
Faced with rising costs, fewer patients and pressure to collaborate with other healthcare providers to meet the demands of healthcare reform, Sibley began exploring mergers last year. One such partnership on the table is a collaboration with the National Cancer Institute to create a top-notch cancer care center with access to clinical trials – such as those organized by Johns Hopkins.
According to the Post, Johns Hopkins will create a planning committee composed of executives from Sibley and Suburban to ensure that the hospitals don’t duplicate services and that they can gain access to needed expertise in subspecialties. In addition, Johns Hopkins officials plan to hire more primary care physicians and specialists to augment Sibley’s staff.
According to the Post, all of Sibley's assets will remain subject to exclusive control of Sibley's board. However, Hopkins will have the right to appoint the majority of the Sibley board members in six years.