Orlando (Fla.) Health decided last week not to merge or affiliate with another system after several months of evaluation. The system lost more than $9.5 million on operations in its fiscal 2013 ended Sept. 30. It has since posted a $26.6 million operating sur in the quarter ended March 31. For the first half of fiscal 2014, it tallied a $57.5 million operating sur, compared with a $2.4 million loss in the year-ago period.
Orlando Health bucks merger trend
The $1.9 billion, not-for-profit system had hired consulting firm Kaufman Hall this year to evaluate a “full range of partnerships,” Dianna Morgan, Orlando Health's board chair, said in an interview. Those options range from a looser clinical partnership, similar to what the system already has with the University of Florida Health in Gainesville, to a full-scale merger.
Orlando Health evaluated eight to 12 organizations, including regional systems and national chains, Morgan said. Because of confidentially agreements, Morgan could not disclose their names. It's unlikely in-town competitor Florida Hospital was part of the negotiations, however, because the two systems combined control about 87% of inpatient admissions in Orlando's tri-county area. —Bob Herman
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