Boca Raton Regional Hospital announced on Monday that it will explore a “strategic partnership” with another health care provider — a process that could result in a merger or acquisition.
The 400-bed nonprofit hospital has been one of the most successful in South Florida at raising funds for expansion, having established the Marcus Neuroscience Institute, the Christine E. Lynn Women’s Health and Wellness Institute, the Lynn Cancer Institute, and the Gloria Drummond Physical Rehabilitation Institute. It has also grown its physician network, opened urgent care centers, and established an academic partnership with the Florida Atlantic University College of Medicine.
“By any metric, we have evolved into one of the outstanding healthcare providers in the state of Florida,” BRRH Chair Christine E. Lynn said. “Yet, there is another level to which we aspire and a partnership with a provider who shares in our mission, culture and goals will accelerate our ability to reach our full potential.”
The hospital’s board formed a steering committee to evaluate such opportunities. It will be led by Dick Schmidt, a former chair of the hospital board.
The process includes exploring the possibility of a merger or acquisition with a local, statewide or national health care provider, said BRRH President and CEOJerry Fedele. However, the hospital would remain a nonprofit and not become part of a for-profit company, he added.
“Most not-for profit community hospitals embody the essence of their community and Boca Raton Regional is the premier example of a hospital born out of community need and supported by philanthropy and volunteers,” Fedele said.
Forming a strategic partnership would mitigate the challenges of a stand-alone organization, increase its access to capital, and allow it to develop nationally recognized clinical programs, he said.
Fedele previously told the board he would retire at the end of August 2018.
BRRH is one of the few stand-alone nonprofit hospitals remaining in South Florida. Bethesda Health in Boynton Beach is set to merge with Baptist Health South Florida later this year. Jupiter Medical Center is also a stand-alone nonprofit. For-profit hospital chains HCA and Tenet Healthcare Corp. control the majority of hospital beds in Palm Beach County.