Stanford Hospital In Talks to Throw Valley Care Health System A Life Line to Merge

This is pretty obvious when Stanford is making money and ValleyCare is not and has laid some employees. It’s time for some due diligence before anything final takes place. Stanford has a residency program to train physicians as well so that would also help. BD

Stanford Hospital & Clinics and ValleyCare Health System have signed a nonbinding letter of intent to merge, marking Stanford's first foray into the community hospital M&A scene.

ValleyCare, a two-campus hospital system based in Pleasanton, Calif., is located approximately 30 miles northeast of Palo Alto, Calif.-based Stanford. ValleyCare has recorded operating losses the past few years—ValleyCare CEO Scott Gregerson said the system lost $5.1 million from operations on $280 million of revenue in fiscal 2013 alone. Stanford, meanwhile, recorded $252.8 million in operating income on $2.7 billion of revenue in 2013.

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