Sentara Healthcare to continue its expansion

NORFOLK

Sentara Healthcare plans to merge with an independent hospital in Charlottesville, as it further extends its reach outside Hampton Roads.

With the addition of Martha Jefferson Hospital, the Sentara system will include 10 hospitals across Virginia. A 176-bed nonprofit hospital founded in 1903, Martha Jefferson is poised to open a new $275 million facility next year.

This is Sentara's third merger in less than two years with an independent hospital elsewhere in Virginia.

Sentara CEO David Bernd said Wednesday that new federal mandates for hospitals have independent facilities seeking relationships with larger systems.

"More quality individuals are looking for partners at one time, and I think that's why these three mergers have happened so close together," he said.

In July, officials of 238-bed Rockingham Memorial Hospital in Harrisonburg announced plans to merge with Sentara. Last year, it merged with a 183-bed Woodbridge hospital, now called Sentara Potomac Hospital.

The national health care overhaul includes a raft of requirements that providers must implement over the next three years.

Jim Haden, Martha Jefferson's president and CEO, said it would be more efficient and cost-effective to work with a network of hospitals to develop solutions in areas such as information technology and payment systems.

"I don't think any of us have all the answers, but together I think we'll be better," he said. "It's not all about economies of scale, but a lot of it is about economies of scale."

Martha Jefferson Health Services began looking at joining another system in 2008.

The affiliation could take six months or more to finalize and also needs approval from the Federal Trade Commission and the state attorney general.

Martha Jefferson will keep its name, and all donations to the hospital will continue to benefit it and its community.

The medical staff will remain independent, and a local board will continue to offer guidance on community issues.

Sentara's expansion to other areas in the state is its bid to participate in the health care industry's consolidation, Bernd said.

"Our board said, 'If there's going to be consolidation, we'd like to see control of health care by Virginians in Virginia,' " Bernd said.

Sentara is also expanding in Hampton Roads. It's building Sentara Princess Anne Hospital in Virginia Beach and has proposed a $130.6 million renovation of Sentara Leigh Hospital in Norfolk.

"We're very committed to continue to increase the quality and availability of health care in Hampton Roads," Bernd said. "It's our core market."

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

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