Cone Health, Randolph Health cease merger talks
Merger would have impeded certain Cone Health projects, current and future; Randolph Health already has interest from other potential partners.
Cone Health Center for Children. Credit: Google Street View
After almost a year-and-a-half of due diligence and exploration, Cone Health and Randolph Health have ceased merger talks and will remain separate entities.
Cone Health said it concluded that combining the systems would mean some of Cone Health's current and future projects would need to be scaled back or tabled.
"Cone Health's overall strategic commitments and our current competitive environment do not give us the latitude to move forward with Randolph Health at the present time," Cone Health CEO Terry Akin said.
Randolph Health CEO Steve Eblin added that Cone Health will continue to be a management partner with Randolph.
Despite a record-breaking surge in M&A activity this year so far, this is the not the first merger proposal to see a beginning, but not an end. In late March, Ascension and Providence St. Joseph Health ended their merger talks, also based on maintaining their own operational vitality.
While the sources said Providence is focused on improving its financial performance and boosting investments in digital, retail and ambulatory healthcare, Ascension is focused on its new strategic plan to bolster growth and labor productivity.
The merger with Providence would have stretched Ascension's reach into the West Coast and Southwest. Providence operates 51 hospitals in seven states, including Alaska, California, Montana, New Mexico and Oregon, where Ascension does not have a presence.
Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com
