UMass Memorial To Sell Wing Hospital To Baystate

UMass Memorial Health Care has signed a letter of intent to sell Wing Memorial Hospital and Medical Centers in Palmer to Springfield-based Baystate Health.

Operations at Wing will continue as usual under the ownership of UMMHC as the two health care systems carry out a period of due diligence and the sale is reviewed by the appropriate regulatory organizations, according to a statement.

“While we recognize that we are only at the beginning of a long and complex process, we are very excited at the prospect of welcoming Wing Memorial, its patients and employees to the Baystate Health family,” said Mark R. Tolosky, president and CEO of Baystate Health.

According to Tolosky, Baystate is experienced in coordinating the health care of patients currently served by Wing. He said Wing physicians and other providers send about half of their referrals to Baystate.

“As part of Baystate Health, Wing would strengthen our local health network and enable patients to get more of their care closer to home,” Tolosky said.

With 74 beds, Wing provides emergency, medical, surgical and psychiatric services to residents in the Quaboag Hills and Pioneer Valley regions. It has been part of the UMMHC system since 1999. Wing also provides outpatient services at its five medical centers in Belchertown, Ludlow, Monson, Palmer, and Wilbraham.

UMMHC CEO Eric Dickson said in a statement that the potential sale was a difficult decision but makes strategic sense.

“A potential transfer of ownership allows both of our health care systems to provide high-quality, safe and affordable care close to home. We are certain through this process, and our continued collaboration with Baystate beyond the potential transfer of Wing, that we can improve services to patients, share best practices, minimize duplication and reduce the overall cost of care in the community,” Dickson said.

News of the planned sale comes after UMMHC’s announcement this fall that it will eliminate services in the coming months in an effort to shore up operating revenue. Officials at the health care system this fall said they’re facing an expected $57-million operating loss for fiscal 2013, which ended Sept. 30.

Forty employees at UMass Memorial Medical Center were also laid off last week as a result of the system’s financial woes, and hospital spokesman Robert Brogna said more job cuts are expected.

The planned sale also comes after UMMHC and Baystate announced this fall they were exploring a potential collaboration deal. The systems have stressed they are not considering a merger, but provided few details on their plans until Wednesday.

UMMHC said Wednesday that discussions so far “have advanced in the areas of sharing of best practices in quality and population health management and jointly applying for grant funding for public health research. The two organizations continue discussing other opportunities, including shared training methodologies and better coordination of specialty services.”

(Image credit: freedigitialphotos.net)

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