All Children's Hospital, an independent nonprofit, made an unusual move by signing on with the Baltimore, Md.,-based Johns Hopkins Health System. What is the potential appeal of the deal for the St. Petersburg hospital?
Financial security: All Children's says it didn't seek out the merger because of immediate financial pressures. But there's no doubt this provides a buffer in a difficult climate for hospitals. Johns Hopkins will assume ultimate financial responsibility for All Children's, which gets 70 percent of its income from Medicaid.
Research: Johns Hopkins is the biggest recipient of grants from the National Institutes of Health in the country — $435 million last year. All Children's looks forward to boosting its research efforts in partnership with Hopkins. Officials say patients could benefit from better access to research studies and trials.
Doctor training: Hopkins plans to send medical residents to All Children's for their clinical pediatric training. That would perhaps double the size of the hospital's current training affiliation with the University of South Florida, which would remain.
Prestige: Scientists with Johns Hopkins School of Medicine have won 20 Nobel Prizes. Johns Hopkins Hospital has been ranked No. 1 in the nation for the past 20 years.
What comes next
Both institutions will go through a period of "due diligence" where they examine in more detail each other's finances and hammer out specifics of the integration. Officials expect that to be completed by year end. Government regulators have to be notified, but since there is no change of ownership, their approval is not required.