Riverside adopts ailing Shore Memorial Hospital

NASSAWADOX

Shore Memorial Hospital, a struggling hospital on the rural Eastern Shore, announced Monday that it will become part of the Riverside Health System.

The affiliation with the Newport News-based health organization is expected to allow the 143-bed hospital in Nassawadox to replace its aging facility and improve its finances.

Shore Memorial trustees had announced in February that they were negotiating exclusively with Riverside. They voted to approve the affiliation Monday. The signed agreement will now be forwarded to the Virginia attorney general's office for review.

The attorney general's office and the Federal Trade Commission can attempt to block mergers if there's concern about unfair competition.

Difficult economic times and the rapidly changing medical landscape have led small, independent hospitals across the country to merge with larger health systems. On Friday, Sentara Healthcare announced that it plans to merge with Potomac Hospital, a 183-bed facility in Woodbridge that serves the Prince William County community.

Trustees at Shore Memorial had been examining options for several years and asked for proposals from other health systems in September. The nonprofit organization signed a letter of intent with Riverside in February.

Riverside has three hospitals, the largest in Newport News, one in Gloucester and one on the Northern Neck. The system also has two specialty hospitals - psychiatric and physical rehabilitation - nine long-term care facilities, and three retirement communities.

Shore Memorial dates back to 1928 and is the only hospital on Virginia's Eastern Shore. Its health network includes an array of outpatient services, such as home health, rehabilitation and cancer treatment.

In a prepared statement, Shore CEO Joseph P. Zager said Riverside has assured physicians on the Eastern Shore they will not be required to change their referral patterns.

Rural, independent hospitals have struggled to survive because they tend to serve older and lower-income populations. That patient base is insured by Medicare, the federal insurance for older people, and Medicaid, the state-federal insurance for low-income people and the disabled.

Both types of insurance pay less than private insurers.

Elizabeth Simpson, (757) 446-2635, elizabeth.simpson@pilotonline.com