Proposed for-profit management is nixed for Memorial Hospital's home health, hospice agencies

by james loewenstein (Staff Writer)
Published: March 19, 2011

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TOWANDA - A proposed joint venture, under which a for-profit company would manage Memorial Hospital's home health agency and hospice service, has fallen through.

On March 10, the company withdrew its proposal to enter into the joint venture with the hospital, said Jeff Russell, director of marketing and development at the hospital.

"The company feels that our employees are working as efficiently as possible and would not be able to improve their daily functioning" under management by the company, Russell said.

When asked if there was any other reason why the company decided not to enter into the joint venture, Russell replied, "No."

Under the joint venture, the company would have purchased from the hospital a percentage of the ownership of the home health agency and hospice service.

The home health agency and hospice service will now remain completely owned by the hospital, Russell said.

"No changes will be made" to the home health agency and the hospice service, he said.

Memorial Hospital will not seek to enter into a joint partnership with another company to run the home health agency and hospice service, Russell said.

Russell explained that the hospital had not sought out the company that it had been negotiating with for the possible joint venture. "The company had approached us" about entering into the joint venture, he said.

Russell said he could not name the company, due to a confidentiality agreement that was reached between the company and the hospital.

He said the company had investigated the feasibility of entering into the joint partnership before making its decision to withdraw from the negotiations.

The home health agency provides services to patients in their homes, such as intravenous therapy, cancer care, and regular nursing care, according to the hospital's website.

James Loewenstein can be reached at (570) 265-1633; or e-mail: jloewenstein@thedailyreview.com.

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