Sussex County’s Nanticoke Health Services has agreed to affiliate itself with the Salisbury-based Peninsula Regional Health System.
The two nonprofit health systems signed a definitive agreement for Peninsula to assume ownership of Nanticoke early next year.
The deal culminates Nanticoke’s two-year search for a partner. During that time, Nanticoke officials have blamed thinning profit margins on the rising cost of drugs, and the Offices of Medicare and Medicaid Services rescinding Delaware’s rural designation in 2010.
In a statement, Nanticoke President and CEO Steve Rose said, “In order for Nanticoke to further its mission to provide the best care possible for our community, it became imperative we find a strong, compatible healthcare partner.”
Under the arrangement with Peninsula, Nanticoke will keep its name and current staff and will become a corporate member on Peninsula’s governing board. Peninsula will help support Nanticoke’s efforts in Sussex County with clinical resources.
Peninsula is also acquiring Maryland’s McCready Health of Crisfield.
Both deals still require state and federal regulatory approval. But once finalized, officials say the newly-formed health system will operate under a new name while each of its individual entities will keep their original names.
