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Economy

Aultman Is Buying Alliance Community Hospital as Northeast Ohio's Consolidation Continues

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Aultman Heath Foundation
Aultman Hospital

More healthcare industry consolidation is in the offing for northeast Ohio. Wednesday Canton-based Aultman Health Foundation signed a letter of intent to buy Alliance Community Hospital.

J. B. Silvers
Credit Case-Western Reserve University
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Case-Western Reserve University
J.B. Silvers, Professor of Banking & Finance

The two Stark county institutions operated separately for 116 years. But, Case-Western Reserve University professor J.B. Silvers says the current economic and political environment in healthcare is drawing them together.

“A small hospital like Alliance is really stressed financially. So, they’re feeling the heat and worrying about survival. And being part of a larger entity is one way to do it.

"From Aultman’s point of view it gives them some leverage and market power.  And of course they’ve got their own health (insurance) plan—AultCare—so it gives them more coverage on that.”

In a joint statement Aultman and Alliance Community said details of the deal are being worked out. An agreement should be ready in the fall, and the sale is expected to be completed by early next year.  

Professor Silvers says more sweeping changes are coming among healthcare providers.

Aultman Is Buying Alliance Community Hospital as Northeast Ohio's Consolidation Continues
Professor Silvers answers questions about the consolidation of the healthcare industry, and in particular about the Aultman/Alliance Community deal