Unity Health System and Rochester General Health System Approve Formal Affiliation Agreement
September 25, 2013
The Boards of Directors of Unity Health System (Unity) and Rochester General Health System (RGHS) today voted to approve, and then signed, an affiliation agreement that spells out the terms and conditions under which the two organizations would come together to form a new health care system. The affiliation agreement stipulates an equal partnership between the parent companies of Unity Health System and Rochester General Health System, resulting in a fully integrated health care system with a single parent company that will set and oversee direction of all its affiliates. The new parent company formed will be governed by one Board of Directors with equal representation from RGHS’ and Unity’s current Boards.
Last April, Unity and RGHS announced they had mutually agreed to enter into discussions to create a formal relationship that would result in one, integrated health care delivery system that could better meet the needs of the community and thrive in an increasingly challenging environment of health care payment and delivery system reform.
“Approval of the affiliation agreement is a milestone in the process because it moves April’s ‘handshake’ agreement between Unity and RGHS to a formal relationship that demonstrates both organizations’ total commitment to make this merger happen,” said Warren Hern, president and chief executive officer, Unity Health System.
“Today’s announcement brings us another exciting step closer to providing the Greater Rochester Region with a community-based health care system that enhances clinical quality, patient care and support services, improves access to health care, lowers costs and keeps our community healthier,” said Mark Clement, president and chief executive officer, Rochester General Health System.
With the affiliation agreement in place, Unity and RGHS will move forward with regulatory filings at the state and federal level, and continue the detailed clinical and operational integration planning work to map out the blueprint for the new organization. It is expected that regulatory review and approval could take six to twelve months to complete.