Johnston Memorial Hospital joins Mountain States

4/1/2009


April 1, 2009 - The partnership between Mountain States Health Alliance and Johnston Memorial Hospital (JMH) was made official today, ushering in a new era of health care for the residents of Southwest Virginia.

“Thanks to the partnership, Johnston Memorial Hospital’s future will be brighter,” said Sean McMurray, CEO for JMH. “MSHA will provide us with a plethora of resources. By utilizing these resources and working collaboratively with MSHA, JMH will operate more efficiently and more effectively, giving us the ability to better serve our patients, expand medical services and provide enhanced opportunities for Team Members.”

Mountain States will hold a 50.1 percent ownership in JMH, while the governance will be equal. The addition of JMH brings Mountain States to a total of 15 hospitals with more than 8,500 Team Members. Johnston Memorial Hospital and Mountain States have similar histories, organizational structures and cultures of patient care. The two organizations are both not-for-profits controlled by local community leaders who sit on a governing board. With roots back to 1905, JMH is a 135-bed modern medical center equipped with state-of-the-art technology. It has approximately 800 employees as well as 160 medical staff members.

“We are very excited about having JMH as part of our healthcare system,” said Dennis Vonderfecht, President and CEO of Mountain States. “The addition of JMH to the Mountain States family completes our system strategy for the I-81 Corridor, and we look forward to being able to more completely serve the healthcare needs of residents of this part of Southwest Virginia.”

The completion of the $132 million partnership also ensures the future of JMH’s new facility being built off Interstate 81 at Exit 19 in Abingdon, Va. Like Franklin Woods Community Hospital being built by Mountain States in Johnson City, Tenn., this new Virginia facility will be a “green” hospital with a focus on energy and environmental design from the construction phase through operations.

“JMH has operated as an independent organization for more than 100 years, so partnering with another health system is a monumental event in our history,” McMurray said. “As we face an increasing number of challenges in our industry, we believe aligning ourselves with MSHA will ensure that our hospital continues to provide our community with excellence in health care.”

The last few years have seen unprecedented growth for the Mountain States system since its creation 10 years ago when the not-for-profit, community-owned Johnson City Medical Center purchased six facilities in the region from a for-profit organization in Middle Tennessee. Mountain States’ recent growth into Virginia has seen Smyth County Community Hospital, Norton Community Hospital, Dickenson Community Hospital and Russell County Medical Center all join the Mountain States family.


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