UMMHC decreases Fairlawn ownership stake

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UMass Memorial Health Care has reduced its ownership stake in Worcester’s Fairlawn Rehabilitation Hospital from 50 percent to 20 percent, according to an announcement yesterday.

As a result, Alabama-based HealthSouth Corp. has become the majority owner of the 110-bed inpatient facility. Fairlawn had been operated as a 50-50 joint venture between the two institutions since 2003, with UMass serving as the majority owner prior to that, according to HealthSouth spokeswoman Casey Lassiter.

The value of the latest transaction wasn't disclosed.

“This additional ownership in Fairlawn Rehabilitation Hospital provides another opportunity for HealthSouth to grow by investing in its core business,” Mark Tarr, executive vice president and chief operating officer, said in a statement.

UMMHC spokesman Rob Brogna said the change came about as the result of an assessment on how the health care system can most effectively use its resources.

“Our decision to reduce our ownership share in Fairlawn allows us to continue this important relationship, while also freeing up resources for our core competencies and other investment opportunities,” Brogna said in a statement.

The ownership shift won’t have any impact on Fairlawn’s staffing or operations, Lassiter said. The facility had nearly 2,500 patient discharges in 2013.

The UMass Memorial system has been struggling as of late, with the medical center in Worcester announcing the equivalent of 388 full-time position cuts since October.

UMMHC is also working to shrink its asset portfolio through the proposed sale of Wing Memorial Hospital in Palmer to Springfield-based Baystate Health (a letter of intent was signed in December) and the February sale of most of its MRI imaging assets to a joint venture operated by Shields Health Care Group and the UMass Memorial Medical Center.

(Image credit: freedigitalphotos.net)

Updated at 1:55 p.m. to clarify the status of the Wing transaction