Health Group And Potomac Hospital to Join

Merger Aims to Improve Care in Poor Economy

Potomac Hospital plans to merge with Norfolk-based Sentara Healthcare to meet the demands of the community in a tough economic time, hospital officials said.

The announcement comes three months after Prince William Health System in Manassas announced its plan to merge with North Carolina-based Novant Health.

"Potomac Hospital and Sentara share a vision of providing high-quality, community-based hospital care," said Potomac Hospital Foundation Executive Director William M. Moss. "These past few years have been a period in which many hospitals, including Potomac, have experienced economic difficulties. This new partnership will safeguard our ability to deliver valuable health-care services to the Prince William community."

Potomac Hospital officials began looking for a partner in February, sorting through 29 organizations before selecting Sentara. The partnership is necessary to keep the nonprofit hospital afloat as reimbursements shrink and more uninsured patients seek medical attention, said Potomac Hospital spokeswoman Charlene Wilkins, noting that the hospital's operating expenses last year were nearly $177 million.

"We're very excited about the opportunity to be a part of the Potomac family and serve the citizens of Northern Virginia," Sentara Healthcare President Howard Kern said. "We're very impressed with the institution as a whole and are confident we can enhance the already solid programs."

Potomac Hospital, which opened in 1972, is a 183-bed institution in the Woodbridge area. Sentara was founded in 1888 as a 25-bed retreat for the sick. It has become the largest integrated health-care provider in southeastern Virginia and northeastern North Carolina, operating seven acute-care hospital sites.

Kern said one of his company's biggest contributions will be to help Potomac Hospital switch to an electronic medical records program, something Sentara and other hospitals nationwide have done.

Sentara will help recruit more specialty physicians and enlarge the hospital's numerous clinical programs, which include radiology and oncology services, orthopedics and cardiology.

As part of the merger agreement, a community health foundation will be established to address the medical needs in Prince William. Although officials from the companies would not comment on how much funding Sentara is contributing, they said it will be enough to assure that Potomac Hospital continues to provide "quality" health-care services.

Wilkins said it will take several months for the merger to be complete. Hospital officials will have to finalize details regarding staff, funding and other changes before presenting their plan to the Virginia attorney general and the Federal Trade Commission for approval.