The much-discussed merger between two major Syracuse hospitals is being called off.
Upstate Medical University Hospital and Crouse Hospitals are canceling their plans to unite, according to a Thursday afternoon news release from Upstate. Instead, the two institutions will enter into a strategic affiliation agreement, which the news release said aims to provide high-quality, accessible care to patients while reducing costs.
Both parties have agreed to withdraw their certificate of need and their certificate of public advantage from the New York State Department of Public Health.
Upstate President Dr. Mantosh Dewan said in a statement the facilities still believe merging is the right idea but the timing is not correct. Dewan said data projections suggest they pause acquisition plans and focus on affiliation opportunities to address ongoing challenges with staff shortages, rising wages, and reduced bed capacity.
"We have signed an affiliation agreement between our two institutions that will create a platform for future collaborations to improve access to care and enhance quality for the patients of Central New York," Dewan said.
This agreement will focus on reducing medical costs, increasing education opportunities and streamlining care, all while keeping both institutions independent in many important aspects.
For the time being, no plans are in motion to postpone or pick up the merger in the future.
The hospitals initially announced plans to merge last April.
