Shore Health System to Join University of Maryland Medical System
For immediate release: April 27, 2006
Merger To Go Into Effect July 1, 2006
The University of Maryland Medical System announced today that the board of
directors of Shore Health System, the largest provider of health services in
the Mid-Shore counties of Maryland, voted unanimously last night to approve
an agreement that will result in a merger of the two institutions.
The board vote results from discussions that began in June 2004, a letter
of intent that was signed by the two organizations in October 2005, and the
subsequent development of a business plan focusing on how to meet the increasingly
complex health care needs of a growing Mid-Shore population.
Shore Health System serves patients in a five-county region that includes
Caroline, Talbot, Dorchester, Kent and Queen Anne’s counties. Shore Health
System and its facilities will continue to operate under their current names.
The agreement also retains a strong local presence on the Shore Health System
board of directors, affiliate boards and the Memorial Hospital Foundation.
“This merger of two strong health systems will advance the missions
of both,” said Edmond F. Notebaert, President and CEO of UMMS. “For
the University of Maryland Medical System, this partnership furthers the fulfillment
of our goal to provide quality health care through a regional system composed
of a world-class academic medical center partnered with the University of Maryland
School of Medicine and premiere community and specialty hospitals. This merger
will bring our services to a new part of Maryland, expand existing clinical
service relationships and create new ones, improve access to tertiary services
for the most serious and complex medical conditions, and create expanded opportunities
for clinical research and teaching.”
“This is a win/win for the people of the Shore and for Maryland,”
said Joseph P. Ross, President and CEO of Shore Health System. “The synergies
we will create with this agreement will be both positive and profound.”
As a result of the merger, residents of the Mid-Shore region are expected
to benefit from enhanced clinical programs and facilities, improved physician
access, and greater convenience to advanced health care services. “While
Shore Health System is already the Mid-Shore’s leading health care provider,
combining with UMMS will over time make it even easier for residents to access
specialized health care services they need without crossing the Bay Bridge,”
said John W. Dillon, Chair of Shore Health System’s Board.
“We have been partners with Shore Health System through several successful
programs that have benefited patients in the Mid-Shore area in recent years.
For example, the two organizations have existing relationships through Maryland
ExpressCare, which provides critically ill patients on the Mid-Shore rapid access
to specialized services at the University of Maryland Medical Center in Baltimore,”
says John W. Ashworth III, the University of Maryland Medical System’s
Senior Vice President of Network Development.
Health system leaders pointed to numerous anticipated benefits of the merger,
- The ability to recruit more physicians to practice on the Mid-Shore.
With strong population growth on the Mid-Shore expected in the coming
years, combined with anticipated retirements among physicians already practicing
in Mid-Shore communities, the need to recruit new physicians is increasingly
urgent. UMMS, through its relationship with the University of Maryland School
of Medicine, will help Shore Health System address current and future physician
- Expansion of clinical services. As a result of the merger, specific
clinical enhancements are planned in areas such as cardiac, neuro, cancer,
diabetes and children’s care, which will enable more Shore residents
to seek the advanced care they need closer to home.
- Access to capital to finance needed facilities expansion. Population
growth on the Mid-Shore will make it necessary to enhance and expand health
care facilities. The business plan developed in the merger negotiations includes
completion of the following facility projects during the coming decade:
- Expanded ambulatory care facilities in fast-growing Queen Anne’s
and Caroline Counties
- Expansion of the Emergency Department at Memorial Hospital slated to
be completed in 2007
- New physician offices and renovation and expansion of Dorchester General
- Replacement of the current Memorial Hospital facility with a new hospital
at a location yet to be determined.
No job losses are expected to result from the merger. “This merger is
about growth and opportunity,” Ross explained. The merger will be effective
July 1, 2006, subject to standard closing procedures.
About Shore Health System:
Shore Health System was formed in 1996 with the affiliation of Dorchester
General Hospital in Cambridge and the Memorial Hospital at Easton,
which have served their communities for a century. The system includes a total
of 187 acute beds in the two hospitals, a 33-bed skilled nursing facility and
a complete range of outpatient diagnostic and treatment facilities throughout
the Mid-Shore. Shore Health System also includes a Regional Cancer Center, Joint
Replacement Center, Birthing Center, Sleep Disorders Center, Wound Healing Center,
Home Health and Hospice, Behavioral Health and other specialty services that
provide comprehensive care for the region. More than 1,700 employees and 200
physicians are part of Shore Health System, which has annual revenues of more
than $172 million.
About University of Maryland Medical System:
The University of Maryland Medical System is a six-hospital system with academic,
community and specialty service missions reaching every part of Maryland, the
Mid-Atlantic region and beyond. The Medical System has 11,000 employees, more
than 1,600 licensed beds and revenues of $1.5 billion. The six hospitals that
make up the Medical System are:
- University of Maryland Medical Center, an innovative teaching hospital
in downtown Baltimore, provides a full range of health care services. It is
a referral center for the most serious and complicated health problems in
adults and children. The medical center includes the Marlene and Stewart Greenebaum
Cancer Center, the R Adams Cowley Shock Trauma Center and the University of
Maryland Hospital for Children.
- Baltimore Washington Medical Center, an acute care community hospital
located in Anne Arundel County that serves patients from throughout the Baltimore/Washington
- Maryland General Hospital, an urban teaching hospital that provides
comprehensive and accessible community health care for residents of Midtown
and West Baltimore.
- Kernan Orthopaedics and Rehabilitation Hospital, located in Woodlawn,
is the state's largest rehabilitation and orthopaedic hospital serving both
adults and children. It also houses the University of Maryland Complementary
- University Specialty Hospital, a chronic care hospital located in
downtown Baltimore that focuses on the complex needs of chronically ill patients.
- Mt. Washington Pediatric Hospital, a pediatric and rehabilitation
hospital located in northwest Baltimore that provides specialty medical care
to infants and children with complex medical needs.