Originally Released: January 14, 1999
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The University of Maryland Medical System (UMMS) and the Maryland General Health Systems (MGHS) signed an agreement today which makes MGHS a part of UMMS. The agreement is designed to strengthen the position of both organizations in today's highly competitive health care marketplace and promote the efficient delivery of health care to the citizens of West Baltimore and Central Maryland. Leaders of both institutions predict that the affiliation will enhance their ability to provide excellent patient care and reduce costs.
The affiliation, which creates a combined system with revenues of more than $650 million, brings together the world-class research, specialized medical care and physician education at the University of Maryland Medical System with the excellent community-based physicians and services of Maryland General Health Systems. Together, the two institutions will serve almost 25 percent of West Baltimore residents who require hospitalization.
Under the agreement, which has been approved by the Boards of Directors for both institutions, Maryland General Health Systems will become a part of the University of Maryland Medical System, and Maryland General Hospital will continue as a community hospital serving West Baltimore and surrounding areas.
"This is a win-win situation for both institutions and the state of Maryland," says Morton I. Rapoport, M.D., President and Chief Executive Officer of the University of Maryland Medical System. "In addition to making primary and specialty care services more accessible, particularly to West Baltimore residents, we will be able to achieve significant cost efficiencies through joint program initiatives, capital investments and purchasing contracts. These efficiencies will enable us to reduce costs while continuing to provide high-quality care and will position us to compete more effectively for managed care contracts," says Dr. Rapoport.
"This is an exciting time for us," says James R. Wood, FACHE, Chief Executive Officer of Maryland General Health Systems. "With Maryland General's emphasis on community-based medicine and University of Maryland's emphasis on specialized care, we have created a complementary health care system that enables patients to receive treatment, regardless of the level of care needed, without leaving our system," says Mr. Wood.
This new venture results in Maryland General Health Systems becoming a major component of the University of Maryland Medical System's health care delivery system. Other components to UMMS' integrated delivery system include primary and specialty care sites throughout Baltimore and central Maryland and the acquisition of Kernan Hospital in 1986 and Deaton Hospital in 1996.
"Alliances such as this one are vital in today's health care marketplace for medical institutions to continue to thrive," says Frank P. Bramble, Sr., chairman of the University of Maryland Medical System Board of Directors. "This is an important step in the continuing growth of the Medical System's integrated delivery system, and it strengthens our long-term commitment to West Baltimore," says Bramble, who is also chief executive officer of First Maryland Bancorp.
With the affiliation comes the creation of an independent, nonprofit foundation that will support activities to improve the health and lifestyles of needy Baltimore citizens, particularly those living in West Baltimore. Foundation resources also will be used to support operational and capital improvement needs at Maryland General Hospital. The Foundation will be funded through the transfer of $20 million from Maryland General Health Systems' existing investment portfolio.
"The University of Maryland Medical System's downtown campus and Maryland General Hospital are major anchors for the important west side development initiative," says Stewart J. Greenebaum, immediate past president of the University of Maryland Medical System's Board of Directors and president of Greenebaum and Rose, a Baltimore-based real estate company. Mr. Greenebaum has been a leader in the medical system's efforts to develop new business affiliations.
The west side redevelopment, led by a partnership of private foundations and business leaders, including the University of Maryland Medical System, will link the west side of downtown with the central business district and the Inner Harbor. The renewal plan for the corridor is expected to include extensive growth in retail businesses, housing and cultural attractions.
The University of Maryland Medical System is a private, not-for-profit teaching hospital system providing a complete range of inpatient and outpatient services to more than 225,000 people each year. Major components of the medical system include University Hospital, the University of Maryland Greenebaum Cancer Center, the University of Maryland Shock Trauma Center, University of Maryland's Hospital for Children, Kernan Hospital, Deaton Hospital and University Post-Acute Care Services. The Medical System employs 5,000 people and has 1,200 physicians on its medical staff.
Maryland General Hospital is a community teaching hospital that serves as the cornerstone of Maryland General Health Systems, Inc., a comprehensive network covering the health care needs of more than 100,000 patients annually. Major components of MGHS include Maryland General Health Care Centers, which provide primary care and other services in Mt. Royal, Highlandtown, Timonium and Catonsville; Maryland General Home Health, which provides health care to patients in their homes; and Maryland Physicians Care, a Medicaid managed care organization. The hospital employs 1,000 people and has more than 400 community physicians on its medical staff.
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