Worcester Business Journal

wbjournal.com | May 29, 2017 | Worcester Business Journal 13 Athol Hospital Operating profit $11,457 $1,336,849 -$495,606 $706,714 Total net revenue $19,494,882 $22,762,029 $22,915,645 $23,727,967 Operating margin 0.06% 5.87% -2.16% 2.98% Total assets $9,065,130 $12,384,983 $10,349,937 $13,071,779 Beds 25 25 25 25 FTEs 162.92 152.47 148.37 138.65 Heywood Hospital Operating profit $2,444,512 $2,455,407 $5,124,095 $3,552,853 Total net revenue $102,055,126 $102,257,679 $106,348,106 $110,733,230 Operating margin 2.40% 2.40% 4.82% 3.21% Total assets $95,467,985 $97,123,339 $96,147,072 $95,194,844 Beds 138 138 138 138 FTEs 674.14 665.86 681.92 716.43 W C E N T R A L M A S S . 1 0 0 F O C U S BROUGHT TO YOU BY: Finding an office printer that's out of paper is easy. It's just as easy to find ways to cut energy costs for your business at MassSave.com. and North Central Massachusetts regions they serve also have a high need for behavioral health services. While the system is actively investing in mental health and addiction treat- ment programs, those don't generate the same dollars that medical-surgical services do. Heywood has strong ties to Saint Vincent Hospital and UMass Memorial Medical Center in Worcester through clinical affiliations with their doctors, but Ken Pierce, a member of the Heywood Healthcare Board of Trustees and former chairman who was involved in the merger talks, said the goal is to stay independent for as long as possible. "If we don't work for it in that direc- tion, then it certainly will be swallowed up," Pierce said of the system. Sidestepping Saint Vincent Athol Hospital could have ended up under the ownership of Tenet Healthcare, the Dallas-based parent of Saint Vincent Hospital. A for-profit company, Tenet bought Saint Vincent Hospital and MetroWest Medical Center in Framingham in a $4.3-billion acquisition of Nashville-based Vanguard Health Systems in 2013. Brown said Heywood Hospital approached Athol about merging as Athol was in talks with Saint Vincent about being acquired, which would have put a major competitor with strong advantages in Heywood's backyard. "We made overtures to them and, lo and behold, they entertained a conver- sation with us," Brown said. He added former Saint Vincent CEO Erik Wexler recognized the potential for Heywood and Athol to partner and backed away. About 15 years earlier, Heywood and Athol had discussed merging, but Brown said talks weren't successful, partially because there was some rivalry between the communities. Heywood Healthcare's two hospitals, post merger Source: Heywood and Athol hospitals FY 2013 FY 2014 FY 2015 FY 2016 FY 2013 FY 2014 FY 2015 FY 2016 But that's changed. Pierce said the merger happened smoothly, after the two hospitals received speedy approval from the Department of Public Health. Pierce said the board of trustees works together seamlessly. Driving development Meanwhile, progress the system has made since in the merger is happening against a backdrop of economic renew- al in the North Quabbin region. Brown said much of it has hinged on retail development at the North Quabbin Commons, a mixed-used development visible from Route 2 in Athol, and the tipping point was the arrival of a Market Basket in 2015. The commons also has an eight- screen cinema and a Starbucks. The next new building to open is an urgent care addition at Heywood's Tully Family Medical Practice at the site. Mark Wright, executive director at the North Quabbin Chamber of Commerce and an Athol native, said there were many sighs of relief in the community with Athol and Heywood merged, and he said the millions of dollars invested into Athol Hospital and services off cam- pus have been impressive. Wright noted Heywood Healthcare is the largest employer in the region, so investment and growth in the system will reverberate. "It will help drive more economic development. It will also help drive an increase in property values and home construction," Wright said. Brown said margins are steady but the system must be prudent about investing in services.

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