Crain's Health Pulse
December 10, 2014
North Shore-LIJ Leasing Deal
North Shore-LIJ signed a 30-year lease on a 252,000 square foot property adjacent to North Shore University Hospital in Manhasset, L.I. Waterstone Development, a Needham, Mass.-based developer, purchased the building, at600 Community Drive, from Manhattan-based Carlton Group for about $59 million. Waterstone will invest $44 million to upgrade and modernize the building, NS-LIJ said. At the end of the lease, Waterstone will donate the property to NS-LIJ. The health system occupies about 55,000 square feet of the building and will increase its space in the coming years. The unusual structure of the lease is consistent with NS-LIJ’s strategy to use its strong credit rating and tenant profile “to drive down occupancy expense by working with landlords who are appreciative of our mission,” said Philip Silverman, senior vice president and chief physical assets officer at NS-LIJ. Mr. Silverman declined to disclose the terms of the lease except to say they were “competitive” for the area.
Crain's Health Pulse
December 9, 2014
Northern Westchester Signs Deal
Northern Westchester Hospital’s board has officially signed a contract for the 233-bed Mount Kisco facility to become part of the North Shore-LIJ Health System. With the formal agreement in place, North Shore-LIJ just needs regulatory approvals in place to close the deal, which it expects to do in early 2015. The agreement calls for Northern Westchester’s board to remain the hospital’s governing body for several years. Northern Westchester becomes North Shore-LIJ’s 19th hospital (Phelps Memorial was No. 18). With Northern Westchester’s 1,200 employees, the system’s workforce now totals more than 51,000.
Long Island Business News
December 8, 2014
North Shore-LIJ Adds Second Westchester Hospital
By: Claude Solnik
The North Shore-LIJ Health System has reached a deal to acquire the 233-bed Northern Westchester Hospital, making it the second Westchester hospital in the Great Neck-based system.
Officials for North Shore-LIJ said they plan to “proceed to secure all necessary approvals to finalize the relationship” with the hospital in Mt. Kisco, which is expected to occur early next year.
Northern Westchester becomes North Shore-LIJ’s 19th hospital, following a deal last month to add Sleepy Hollow-based Phelps Memorial Hospital Center, also in Westchester.
Northern Westchester Hospital CEO Joel Seligman said his hospital will benefit from stronger clinical information systems, economies of scale, access to capital “and the sharing of knowledge available from a system of community hospitals anchored by well-established academic medical centers.”
Northern Westchester employs roughly 1,200 employees, increasing North Shore-LIJ’s workforce to more than 51,000, making it the largest private employer in New York State.
North Shore-LIJ CEO Michael Dowling said this is part of a continued to plan to expand into the Hudson Valley.
“This focus on local care will be supported by a commitment to maintaining and enhancing the key services that the hospital provides to the community today,” he said.
Northern Westchester Hospital, like Phelps Memorial Hospital Center, was part of the Stellaris Health Network, before it disbanded earlier this year.
“We’re assessing where they’re at right now, their market position and needs,” said North Shore-LIJ spokesman Terry Lynam. ” We’ll make a decision at that point what kind of investments are needed, what clinical programs need to be added or expanded.”
North Shore-LIJ said Northern Westchester Hospital and its leadership team “will have an important role in developing expansion plans for the North Shore-LIJ Health System in the greater Hudson Valley.”
This deal calls for the Northern Westchester Board to remain a governing body for the hospital for the next several years.
Capital New York
December 8, 2014
North Shore-LIJ, Northern Westchester Reach Agreement
By Dan Goldberg
North Shore-L.I.J. Health System has reached an affiliation agreement with Northern Westchester Hospital, its second move into Westchester County.
Earlier this year, L.I.J. reached an affiliation agreement with Phelps Memorial Hospital in Sleepy Hollow. The health system, the largest private employer in the state, now has 19 hospitals under its umbrella.
The move into Westchester allows L.I.J. to offer medical services as well as its health insurance product, CareConnect, which is being sold on the state's Affordable Care Act exchange, to a new regional market.
Northern Westchester Hospital, which has 233 beds in Mount Kisco, can look to L.I.J. for capital investment and for administrative help.
“By joining the North Shore-L.I.J. Health System, N.W.H. will directly benefit from stronger clinical information systems, economies of scale, access to capital, and the sharing of knowledge available from a system of community hospitals anchored by well-established academic medical centers,” Joel Seligman, president and C.E.O. of Northern Westchester Hospital, said in a press release.
L.I.J. will be competing for Westchester customers with Bronx-based Montefiore Medical Center, which has agreements with New Rochelle, White Plains and Mount Vernon hospitals as well as Nyack Hospital in Rockland County.
The wave of consolidation, spurred in part by the Affordable Care Act, has been playing out across New York State and the nation.
Hospital executives feel payment models are favoring value-based programs, such as capitation or bundled payments, over fee-for-service. That means a health system receives a set amount of money for a patient or a condition as opposed to a fee for every service provided.
In the new model, systems require lots of patients so that outliers, who do become ill and require expensive treatment do not pose too great a burden on the system as a whole.
December 8, 2014
Northern Westchester Hospital Leadership Plans Strong Future for Local Healthcare by Joining the North Shore-LIJ Health System