IBJNews

Clarian moves to scoop up Morgan

J.K. Wall
September 8, 2010
Back to TopCommentsE-mailPrintBookmark and Share

It looks like Clarian may be back to deal-making. The Indianapolis-based hospital system has signed a letter of intent to absorb Morgan Hospital and Medical Center.

Clarian has had a formal partnership with the Martinsville hospital since January 2006, helping recruit physicians and secure accreditation for key programs. But the merger talks, which would still need approval of the hospital’s board of trustees and Morgan County commissioners, make the relationship even more serious.

Clarian has used its relationships with smaller hospitals around the state to provide a steady flow of patients to its massive facilities in downtown Indianapolis. Also, Clarian CEO Dan Evans has been open about his interest in acquiring suburban hospitals to help generate profits to support Clarian’s downtown Indianapolis facilities.

Since 2002, Evans has engineered Clarian’s acquisitions of hospitals in Bloomington, Hartford City, Muncie and Paoli, as well as pulling affiliated hospitals in Bedford, Goshen, LaPorte and Tipton into even tighter relationships.

Also, Clarian has built hospitals in Avon, Carmel and Lafayette, and has another underway in Fishers.

Evans declared in January that Clarian was in “digestion mode” and wasn’t seeking more acquisitions at the time.

Since then, Clarian’s erstwhile rival St. Vincent Health has continued to grow its statewide network, agreeing to purchase hospitals in Bedford and Salem.

Smaller hospitals have been increasingly open to merging with larger systems because they want more heft in negotiations with health insurers and suppliers, a greater ability to attract specialist physicians, and stronger balance sheets to make borrowing less expensive.

Also, hospitals systems like Clarian are trying to improve care quality ranging from physician visits to complex surgeries because public and private insurance programs are pushing to make more of their compensation based on quality and the results of patient care.

Morgan Hospital is licensed for 106 beds. In 2009, it had operating revenue of $49.3 million and a surplus of $2.7 million.

Morgan CEO Tom Laux told The Reporter-Times in Martinsville that strengthening the hospital’s relationship will continue to help improve patient care and expand services in Martinsville.

“After extensive due diligence by the board of trustees, and discussions with our medical staff leadership, managers and employees, this seems to be the next logical step in our relationship with Clarian,” Laux said in a statement. “If this agreement happens, it will clearly demonstrate achievement of our mission and more advances, more care for future generations."

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

ADVERTISEMENT