SHARON, Pa. - Sharon Regional Health System is in talks to affiliate with Community Health Systems, the Tennessee-based hospital system that owns and operates local ValleyCare health facilities, Sharon Regional announced Wednesday.
The hospital system said the transaction would result in "capital investments and other resources to help position Sharon Regional for future long-term success."
Officials said the Cleveland Clinic also will be involved in the plan by participating in clinical program development, quality improvement and branding through its own alliance with CHS.
According to a prepared media statement, following a yearlong process and review of strategic options, Sharon Regional's Board of Directors unanimously approved and executed a nonbinding letter of intent for a sale of the Sharon Regional's assets to a subsidiary of Community Health Systems Inc.
Sharon Regional will now move forward through a period of due diligence and exclusive negotiations over the terms of the transaction.
"We engaged in a thorough and thoughtful process to ensure the best possible future for Sharon Regional and determined that affiliating with Community Health Systems, a highly regarded national health care organization, provides the greatest opportunity for building our future success," said William Strimbu, chairman of the board of Sharon Regional.
"We will also benefit from the strategic alliance announced earlier this year between CHS and the Cleveland Clinic. The Cleveland Clinic will collaborate to advance quality and clinical programs, creating a true advantage for our medical staff, employees and, most importantly, our patients," Strimbu said.
A definitive agreement is expected later this year. The transaction will be subject to customary closing conditions and regulatory approvals.
CHS last week announced that, along with the Cleveland Clinic, the health system is also in negotiations to buy Akron General Medical Center and several other sister hospitals.
Due diligence, finalizing terms and regulatory approval are the next steps in that deal, but no timeline was released.
CHS's ValleyCare Health System operates Trumbull Memorial Hospital, Northside Medical Center, Hillside Rehabilitation Hospital and other local facilities.