Since the opening of what was then known as the Havre de Grace Hospital in a converted mansion on Union Avenue in 1912, health care service in eastern Harford and western Cecil County has been mostly a local affair, with doctors, nurses and other hospital and clinical workers being the friends and family members of those who received their services.

Some of that local feel is likely to change in the next four years after the nonprofit company that owns Harford Memorial Hospital in Havre de Grace announced this week it has agreed to be acquired by the larger University of Maryland Medical System based in Baltimore.

If the deal goes through as planned, local control of Harford County’s and western Cecil County’s principal health care delivery system will end sometime in 2013, 101 years after the area’s first hospital opened its doors in Havre de Grace.

A strategic affiliation between Bel Air-based Upper Chesapeake Health, or UCH, and University of Maryland Medical System, or UMMS, was announced by their boards of directors Tuesday.

“This agreement expands on the current partnership that Upper Chesapeake Health has with UMMS and will most likely lead to a full merger infusing millions of health care related dollars into UCH and our service areas of Harford and western Cecil County,” according to an e-mail distributed Tuesday to elected officials and community leaders by Upper Chesapeake Health officials.

While their initial affiliation is not expected to have a visible change on health care services in Harford County, officials at both nonprofit organizations said the arrangement will bring Upper Chesapeake Health greater access to capital for future expansion, including expanding clinical programs and services and developing ambulatory services, as well as access to a larger pool of primary care physicians and specialists, at a time when the state and region are facing a doctor shortage that may reach a crisis level.

“This is very exciting; it’s a great opportunity for both of us,” Robert Chrencik, UMMS’s president and CEO, said Tuesday. “Upper Chesapeake is a very valuable addition to our system. It will be a very, very important part going forward.”

In addition to Harford Memorial, Upper Chesapeake owns Upper Chesapeake Medical Center in Bel Air and Harford Memorial Hospital in Havre de Grace and is Harford County’s largest private employer.

UMMS owns and operates nine hospitals around the state including its flagship University of Maryland Hospital in Baltimore, which is also home to the renowned Maryland Shock Trauma Center. University Hospital is also the teaching hospital for the University of Maryland’s medical and nursing schools.

According to Upper Chesapeake, about six out of every 10 residents of Harford County and western Cecil County use its clinical and hospital services.

The two organizations plan a full merger by 2013 through a three stage process over the next four years.

At the end of those four years, the merger will be complete and UMMS will be in control of the two hospitals and other clinical services they provide through Upper Chesapeake Health.

“We have had unanimity at every turn,” Roger Schneider, chairman of the Upper Chesapeake Health Board, said of the merger decision.

Schneider and Upper Chesapeake President and CEO Lyle Sheldon met Tuesday with members of The Record Editorial Board and explained what led up to the affiliation and what Upper Chesapeake’s customers, employees and the community can expect in the future.

Eighteen months ago, before the downturn in the economy, the board of UCH asked if it would be able to achieve everything it needed to do in all areas by itself — the answer to the question is what led to the discussion of the merger.

“Realistically, we can’t do it on our own. We need a partner with a strategic vision,” Schneider said, adding that UMMS was selected for the merger because of its past success, excellent bond rating and access to capital.

The primary advantage of the affiliation for Harford and western Cecil county residents will be they will not have to leave the county for the majority of their health care needs, as more clinical services will become available locally.

But the merger plan also means some degree of uncertainty about Harford Memorial’s future. Although Upper Chesapeake has acquired undeveloped property at Bulle Rock Parkway and Route 155 with an eye to building a new hospital there, both UMMS’ Chrencik and Upper Chesapeake’s Sheldon said no final decision will be made on major construction projects until the partners have developed a strategic business plan. Schneider, the Upper Chesapeake chairman, noted, however, that during a recent tour of Harford Memorial, Chrencik indicated the hospital needs new emergency facilities to meet the growing demand for those services. Sheldon acknowledged it may not be possible to keep patching and adding on at the current location in downtown Havre de Grace.

Under the three-step merger plan proposed by Upper Chesapeake and UMMS, the larger partner will begin providing a large infusion of capital Oct. 1, raising its equity stake in Upper Chesapeake to 49 percent. October will also mark the beginning of clarifying the business and facility plan for Upper Chesapeake Health.

“The plan will clarify where it will make the most sense to put more money,” Sheldon said, adding the plan will take up to a year to complete.

Upper Chesapeake Health’s change in ownership will be completed in 2013.

Record staff member Allan Vought contributed to this article.

“This will be a great partnership for their organization, one that is beneficial for residents, for UMMS, for all of us,” Chrencik said. “Our hope is to use the assets of each other for a very successful plan, one that’s a win-win for everyone.”

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