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Independent providers acquire Mishawaka hospital

(photo courtesy of Unity Medical and Surgical Hospital)

MISHAWAKA, Ind. (Inside INdiana Business) — Three independent health care providers in northern Indiana have joined together to buy their own hospital.

The South Bend Clinic, Allied Physicians of Michiana, and South Bend Orthopaedics have agreed to purchase a majority interest in Unity Medical and Surgical Hospital of Mishawaka.

The purchase agreement was finalized Tuesday and has been approved by the boards of directors for all of the organizations. Financial terms of the acquisition are not being disclosed.

In an interview with “Inside INdiana Business,” South Bend Clinic Chief Executive Officer Kelly Macken-Marble said the providers had been looking for ways to improve quality and reduce cost of care.

“We thought that this collaboration around Unity Hospital provided an opportunity for us to offer an inpatient alternative in our community that we could really focus on driving down health care costs,” said Macken-Marble. “So for us, it was an opportunity to work together to do that and bring another option to the community in the Michiana area.”

The providers are independent and not directly affiliated with two of the major health systems already in St. Joseph County.

Macken-Marble says while those health systems are important, creating more options for care in the community is also important. “This collaboration creates a physician-owned and -led organization different than the local health systems and so I think it positions us really uniquely to really drive down health care costs.”

Unity Medial and Surgical Hospital is a subsidiary of Toronto-based Medical Facilities Corp. The hospital, which opened in 2009, has four operating rooms and 29 inpatient rooms. Unity also operates three family medicine clinics in the Michiana area.

“This convergence of healthcare knowledge and experience is most innovative and unique,” Shery Roussarie, CEO of Allied Physicians of Michiana, said in a news release. “As a physician-driven hospital we are creating solutions that address the drive to reduce healthcare spend in the region, which promotes employer health and job growth, creating a stronger, healthier community.”

The partners say after the purchase is fully implemented, Unity Hospital will be rebranded. Macken-Marble says that would include a name change for the facility and the rebranding process could be completed within the next 60-90 days.

“What we want to do is create a new brand, increase awareness of this inpatient surgical hospital option in the community. There is a lack of awareness, so it is an opportunity to rebrand, rename, and relaunch it in the community.”