I’m Jeff Tanner, Dean of the Strome College of Business, and this is a Strome Business Minute. Sentara’s blockbuster merger with Cone Health in North Carolina will result in a healthcare system with eleven billion in assets. While Cone brings five hospitals compared to Sentara’s twelve, Cone officials are adamant that this is a merger, not an acquisition, and state the new company will maintain a regional headquarters in Greenville. But the merger can only result in efficiencies and lower overhead by consolidating back office functions. Both hospitals struggled in the first quarter, pre COVID, with Sentara actually posting a loss, performance which heightens the need for cost reductions. Cone has recovered but Sentara said last May that even if services reached normal levels, revenue would still be down millions this year, performance that will put the pressure on to lower operating costs particularly in the home office. This has been a Strome Business Minute, presented by the Strome College of Business at Old Dominion University.