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Cayuga Health, Arnot Health seek to manage $1 billion of medical services under proposed parent company

by John R. Fischer, Senior Reporter | October 11, 2023
Business Affairs
Cayuga Health and Arnot Health are requesting New York State approval to affiliate under one company.
The boards of directors for Cayuga Health System and Arnot Health are requesting New York State’s approval to affiliate under a new parent company that will oversee $1 billion in medical services across nine counties in the Southern Tier and Finger Lakes regions.

Cayuga Health is made up of Cayuga Medical Center, Schuyler Hospital, and a multispecialty group, Cayuga Medical Associates, and employs over 2,200 in the Finger Lakes area.

Arnot Health is a not-for-profit consisting of Arnot Ogden Medical Center, St. Joseph’s in Elmira, and Ira Davenport Memorial Hospital in Bath. It is affiliated with more than 300 physicians from over 50 specialties and operates over 40 medical offices across the Southern Tier and a neonatal intensive care unit (NICU) that serves Chemung and nine neighboring counties.

Under one company, the two organizations would continue to provide emergency, critical cardiac, cancer, acute, and NICU care, as well as labor and delivery services, outpatient physician care, outpatient and inpatient behavioral health, substance use disorder rehabilitation, and long-term care. Additionally, they would offer home nursing, durable medical equipment and supplies, and emergency transportation.

Both would remain independent organizations, they say.

“This partnership will ensure the essential, high-quality healthcare services that community members and businesses across our region rely upon will continue to be delivered locally,” said Jonathan Lawrence, president and CEO of Arnot Health, in a statement.

The two announced that they were considering affiliating back in April and initiated a period of study that showed that they could together improve access to high-quality medical services in their respective regions.

If the state approves their affiliation, Lawrence would serve as executive vice president of the company, while Dr. Martin Stallone, president and CEO of Cayuga Health, would be the CEO.

Both say they will make capital improvements to their facilities and invest continually in their healthcare workforces, including nursing, radiologic technologists, physician assistants, graduate medical education and medical school, and other professional training initiatives. The Cayuga Professions Learning Center will also be expanded to link job opportunities with training initiatives throughout the parent company and beyond.

“Our study with Arnot Health uncovered innumerable ways a collaboration could improve the healthcare delivered across the Southern Tier and Finger Lakes regions,” said Stallone. “We look forward to moving into the next phase of this process with New York State.”

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