GREENEVILLE, Tenn. (AP) - Officials with Laughlin Memorial Hospital have announced a plan to merge into the Mountain States Health Alliance early next year.
Hospital officials said in a news release Tuesday that a letter of intent regarding the merger was approved unanimously by the boards of directors of both Laughlin and the Johnson City-based hospital system.
Laughlin cited the difficult economic climate small rural hospitals are operating in as a critical factor for why it approached Mountain States about merging.
The hospital says its revenues have increased less than 1 percent over the past five years while expenses have risen between 2 percent and 5 percent annually.
MSHA President and CEO Alan Levine emphasized the system’s new relationship with Laughlin is a merger rather than a buyout. No money will exchange hands.
Please read our comment policy before commenting.