Parkview Health, which describes itself as Indiana’s largest rural healthcare provider and northeast Indiana’s largest employer, has signed an agreement to acquire Ovation Healthcare, a Brentwood, Tenn.-based provider of “shared services that strengthen the operational and financial performance of hospitals, health systems and physician practices nationwide.” Ovation Healthcare has partnered with more than 500 healthcare organizations across 48 states, from critical access hospitals to large health systems.
Parkview, a nonprofit, community-focused health system serving Indiana and northwest Ohio based in Fort Wayne, Ind., operates 16 hospitals and a network of primary care and specialty care physicians. It plans to build a new hospital in West Lafayette, Ind., expand services in Grant County, and strengthen partnerships with Riverview Health, Goshen Health and Witham Health Services.
The proposed Ovation acquisition appears to be an attempt by Parkview Health to expand its influence among rural hospitals and health systems nationwide.
“By investing in Ovation Healthcare, Parkview is bringing its administrative and operational expertise, such as in revenue cycle management and information services, to a premier national rural health platform to help providers keep care close to home in the communities that need it most,” Parkview stated in a press release.
“With Ovation Healthcare, we are extending Parkview’s proven operational depth across the nation to help rural providers remain independent, while continuing to drive down administrative costs for our local patients,” said Parkview Health CEO Rick Henvey. “Through Ovation, we can help rural providers lower the cost of care with essential infrastructure and allow them to focus their resources on patient care.”
Parkview stated that its investment in Ovation can “expand its commitment to a national shared services platform that allows hospitals to focus their resources on clinical care while also lowering costs.”
Following closing, the two companies will “combine their complementary operations and operate under the Ovation Healthcare brand.” Parkview Health will become the owner of Ovation Healthcare, and Ovation will continue to operate as a separate healthcare services organization with its own governing board.
Parkview describes the proposed acquisition, which it anticipates it will close “in the coming weeks following standard regulatory review processes and approvals,” as “another significant step in its multi-year strategy to lower the cost of care for employers and patients by reducing administrative expenses while continuing to focus on leading the state in quality and safety at the bedside.”
