Hospital in Harrisonburg affiliates with Sentara Healthcare

Sentara Heathcare intends to affiliate with a Harrisonburg-area hospital that has been struggling to survive as an independent facility.

RMH Healthcare officials announced Thursday that a letter of intent had been signed with Sentara to merge its 238-bed Rockingham Memorial Hospital with Sentara's network of eight hospitals. Rockingham Memorial Hospital is just east of Harrisonburg, which is northwest of Charlottesville.

The hospital, which has operated independently for almost a century, began seeking an affiliation with a larger system early this year, reviewing proposals from 10 health systems. RMH officials said the current economics of health care make it difficult for independent hospitals to thrive.

Norfolk-based Sentara, meanwhile, has been looking to expand its system of facilities throughout the state.

Last year, the health care system merged with a 183-bed hospital in Woodbridge, now called Sentara Potomac Hospital, in its first hospital foray into Northern Virginia. RMH will be the system's second hospital affiliation outside Hampton Roads. The affiliation could take six months or more to finalize and would also need approval from the Federal Trade Commission and the state attorney general.

David Bernd, CEO of Sentara Healthcare, said Thursday that health care reform is driving many independent community hospitals to affiliate with larger systems because of complexities of the law, which was passed earlier this year.

He said larger systems such as Sentara are able to help smaller hospitals implement electronic records and other reform initiatives designed to make health care more cost-efficient.

"We think there will continue to be more consolidation over the next few years as independent hospitals look for partnerships," Bernd said.

He said a strategic plan crafted for Sentara five years ago called for expansion throughout the state.

The hospital in Harrisonburg recently moved into a $300 million facility that includes a heart and vascular center, a center for sleep medicine, a women's center and a wellness center, among other services. The merger is expected to lower costs for supplies and give the hospital access to capital to keep equipment updated.

Amy Jeter, (757) 446-2730, amy.jeter@pilotonline.com

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