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SUNY Upstate, Crouse Hospital call off merger

Upstate Medical University

SUNY Upstate University Hospital and Crouse Hospital announced Thursday they would not be proceeding with their planned merger in the near future.

The medical providers issued a statement saying they have entered a strategic affiliation agreement which could allow future collaboration, but they have also pulled their Certificate of Need (CON) and Certificate of Public Advantage (COPA) applications filed with the New York State Department of Health.

Back in April, it was announced that SUNY Upstate would be acquiring nonprofit Crouse Hospital. Upstate was not to pay anything for the acquisition of Crouse but would take on Crouse's $77 million debt.

Now that is not the case.

Upstate President Dr. Mantosh Dewan said in a press release Thursday that the decision was not the outcome they anticipated.

“It is the prudent decision at this time and is a result of the economic and operational headwinds health care is facing, not just here in Syracuse, but nationwide,” Dewan said. “Should circumstances sufficiently change moving forward, we will consider revising and resubmitting applications for a CON and COPA that would authorize Crouse Health to become a division of SUNY Upstate Medical University. In the meantime, we look forward to working with Crouse under the affiliation agreement.”

“Crouse Health’s mission is to provide the best in patient care and promote community health," Chair of the Crouse Health Board Patrick Mannion said in a release. "We believe this is best accomplished in partnership with Upstate Medical University. Our goal is to utilize the affiliation agreement as an important framework for collaborating for the benefit of the community. Crouse remains well positioned and committed to providing vital services to our community with the support of our dedicated medical staff and employees.” 

The two hospitals say they recognize the benefits from affiliation but the acquisition is impractical at this time.

Ava Pukatch joined the WRVO news team in September 2022. She previously reported for WCHL in Chapel Hill, NC and earned a degree in Journalism and Media from the University of North Carolina at Chapel Hill. At UNC, Ava was a Stembler Scholar and a reporter and producer for the award-winning UNC Hussman broadcast Carolina Connection. In her free time, Ava enjoys theatre, coffee and cheering on Tar Heel sports. Find her on Twitter @apukatch.