Crouse Hospital and Upstate University Hospital will no longer seek a merger, withdrawing the current Certificate of Need and the Certificate of Public Advantage applications, officials from both hospitals announced Thursday.
The two medical facilities will be under a strategic affiliation agreement, however, which will allow for future collaboration on certain programs, but both institutions will continue to operate as separate and independent legal entities, Spectrum News 1 reports.
Upstate University Hospital announced their intention to acquire Crouse in April.
The Federal Trade Commission in October advised the New York State Department of Health against granting an antitrust law exception to SUNY Upstate Medical University and Crouse Health System’s merger bid.
FTC answered the health department’s request for public comment with an 88-page submission that argued a merger would likely drive higher costs, lower care quality, reduce access to care and lead to lower wages for hospital workers.
“This is not the outcome we anticipated when we started down this road, but it is the prudent decision at this time and is a result of the economic and operational headwinds health care is facing, not just here in Syracuse, but nationwide,” said Upstate President Mantosh Dewan. “Should circumstances sufficiently change moving forward, we will consider revising and resubmitting applications for a CON and COPA that would authorize Crouse Health to become a division of SUNY Upstate Medical University. In the meantime we look forward to working with Crouse under the affiliation agreement.” Read more.
