SYRACUSE — The pursuit of regulatory approvals is underway, and it’s a process that’s expected to take several months as Upstate Medical University seeks to acquire neighboring Crouse Health.

If approved, the operations of Crouse Health would become part of the Upstate Medical University Health System.

Upstate Medical did not disclose the purchase price or any other financial terms of its proposed acquisition in its April 14 announcement.

The planned combination of the two medical neighbors near Syracuse University seeks to “enhance care delivery to Central New Yorkers,” Upstate Medical said in its announcement. 

Both health-care institutions are currently seeking regulatory approvals, including a certificate of need from the New York State Department of Health. During this time, the two institutions will remain independent, Upstate Medical said.

The merger will include all of Crouse Hospital’s inpatient and outpatient services. Crouse Hospital will become part of Upstate University Hospital and the Crouse campus will be branded as Upstate Crouse Hospital. Crouse Medical Practice will remain intact and will be rebranded as Upstate Crouse Medical Practice.

Upstate Medical University is already Central New York’s largest employer and would become even bigger with its acquisition of the 12th largest employer, Crouse, according to the 2022 Book of Lists, which includes data for the 16-county CNY region.

The acquisition will create a system with more than 13,000 employees, 1,200 licensed inpatient hospital beds, and offer more than 70 specialties. 

The combination will “markedly increase” clinical-training opportunities for future health-care providers studying in the College of Medicine, College of Health Professions, and two complementary Schools of Nursing, Upstate Medical contends.

Upstate Medical said it anticipates that the two organizations’ current respective unions will continue to represent union employees at each hospital.

Union reaction 

Wayne Spence, president of the New York State Public Employees Federation (PEF), on April 15 issued the following statement in reaction to Upstate Medical’s proposal to buy private, nonprofit Crouse Hospital. 

PEF is the bargaining unit for about 1,800 employees at Upstate Medical University, which is part of the State University of New York (SUNY).

“SUNY Upstate Medical University’s bid to acquire Crouse Hospital presents a huge range of complex issues that must be closely considered. PEF deserves a seat at the table to talk through the complications that are sure to arise when two separate unionized workforces merge. To cite just one example — employees doing the same work could be subject to two different collective bargaining agreements with different benefits. To this point, no reason or justification has been provided to us for why Upstate is privatizing part of their health care system when it is clear that SUNY Upstate, a public hospital, is fully taking over Crouse and all its obligations. We await answers and trust that State lawmakers will ask questions throughout the approval process as well,” Spence said.

Officials’ comments

The announcement from Upstate Medical University included reactions from many of the top officials at both health systems, including Patrick Mannion, chairman of the Crouse Health board of directors. 

“Our board has always focused on the best way to meet community health needs and this joining of two highly regarded institutions committed to Central New York will help ensure the quality care our communities deserve,” Mannion contended. “Discussions between Crouse and Upstate have always revolved around creating the best environment possible for patients, medical professionals and dedicated staff. The board determined that integration with a local partner was the best option for Crouse, and given our history, Upstate was the preferred choice, one that the community will embrace.” 

The cultures at the two institutions have “evolved in recent years, becoming similar in many ways,” Kimberly Boynton, CEO of Crouse Health, said. “In fact, the two cultures are more aligned now than they have ever been,” she said. 

“Building upon our combined strengths will be a significant step in shaping the future growth of the region’s only academic medical center as we expand educational and training opportunities for the medical professionals of tomorrow,” Dr. Mantosh Dewan, president of Upstate Medical University, said. “Moving forward, our exceptional medical staffs will continue to provide great value to our community as we work together to enhance patient care for our region.”

Dr. Robert Corona, CEO of Upstate University Hospital, also added his thoughts.

“There has been a natural progression in our relationship over the years. Between the two organizations, there are many clinical services that complement each other. Formalizing the relationship with Crouse — and making it a key component of our University Hospital system — would allow these services to flourish,” he contended.