Dive Summary:
- Louisiana-based Ochsner Health has officially merged with Rush Health Systems, giving the combined system seven hospitals and more than 30 clinics in the east Mississippi and west Alabama region, according to an announcement Monday.
- The new names and brands are appearing at regional hospitals under the new brand, Ochsner Rush Health, the release said. Ochsner Rush Health will have 250 staff and contracted physicians and 95 advanced practice providers.
- Ochsner Rush Health is also raising its minimum wage to $12 an hour, affecting more than 400 employees and representing a $1.5 million investment, according to the release.
Dive Insight:
The two systems signed a letter of intent to merge in June 2021. The completed merger could allow the system to expand access to specialty and subspecialty services, giving patients access to care closer to home, the company said.
Ochsner, which had a leadership base in the pre-merger South Bay, will now add seven hospitals to the 40 hospitals and more than 300 health and urgent care centers it has across the region before the merger.
Ochsner hopes the deal will allow it to expand its technology capabilities and digital offerings, such as telehealth, digital monitoring and artificial intelligence across Ochsner Rush facilities, along with its clinical research network.
Ochsner reported $5.9 billion in revenue and $138 million in operating income for its 2021 fiscal year.
The completion of the Ochsner Rush merger comes as the Federal Trade Commission has increased its focus on hospital mergers and their potential to reduce competition, with the agency blocking a number of agreements so far this year.
However, M&A activity has remained sluggish since last year deals are growing in size as mega-mergers, in which the seller’s annual revenue reaches $1 billion, remain an ongoing trend, according to Kaufman Hall’s latest quarterly M&A report.
