St. Joseph Health, Providence Health partnership moves forward

St. Joseph Health, which has medical facilities in Sonoma and Napa counties, and Washington-based Providence Health & Services are moving forward with previously announced intentions to merge.

Specific details about a partnership have not been finalized, but the arrangement under a new, single organization would expand both operations to include 50 hospitals in Alaska, California, Montana, Oregon, Washington and Texas. The two Catholic health systems signed a letter of intent in July.

The new organization will be called Providence St. Joseph Health. St. Joe and Providence will maintain separate offices and each appoint members to the new board.

“We are two mission-focused organizations which truly have the potential of being better together, delivering outstanding clinical care and providing a compassionate presence in all the communities we serve,” said Deborah Proctor, president and CEO of St. Joseph Health, in a statement.

Orange County-based St. Joseph Health is a nonprofit, integrated health care delivery system that includes 16 hospitals, physician organizations, home health agencies, hospice, outpatient services and community outreach services. The network includes Santa Rosa Memorial Hospital and Annadel Medical Group in Santa Rosa, Petaluma Valley Hospital, and Queen of the Valley Medical Center and an affiliated physician group in Napa. As of last year, the system had 24,733 employees.

Providence’s services include 34 hospitals, 475 physician clinics, senior services, supportive housing and a number of other health and educational services. The health system and its affiliates employ more than 76,000 people. Last year, the organization provided more than $848 million in community benefit to help create healthier communities.

“Providence and St. Joseph Health’s missions are aligned to improve the quality of care, increase access and make care more affordable for everyone,” said Rod Hochman, M.D., president and CEO of Providence Health & Services.

According to Moody’s Investors Service, the U.S. health care industry is continuing an unprecedented wave of consolidation. Organizations are partnering to shoulder the costs of health care reform under the 2010 federal Affordable Care Act and better coordinate patient care across health systems.

This will be Providence’s largest combination, after forming an alliance with Swedish Health Services in 2012.

St. Joseph Health and Providence maintain a tradition of Catholic health care and share a philosophy of inclusion and diversity, and both systems share similar heritages. The Sisters of St. Joseph of Orange started in Northern California 103 years ago and eventually grew to serve other parts of the state, as well as communities in Texas and New Mexico. Nearly 160 years ago, the Sisters of Providence traveled from Montreal to Washington state to build health care in the Northwest, eventually growing to serve Alaska, California, Montana, Oregon and Washington.

St. Joseph Health and Providence will be working with the state Attorney General’s Office to review the proposed partnership over the next several months.

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