Renton, Wash.-based Providence Health & Services and Irvine, Calif.-based St. Joseph Health System are one step closer to partnering, according to a Times-Standard report.
About four months after the two parties announced intent to merge, they have signed a definitive agreement.
Here are six things to know about the proposed merger.
1. The two Catholic health systems plan to create a new parent organization, Providence St. Joseph Health.
2. Providence St. Joseph Health will focus on "a shared mission and vision, as well as the strategic, financial and operational direction for the system overall," officials said.
3. Rod Hochman, MD, president and CEO of Providence Health & Services, will serve as CEO of the parent organization, which will be based in Renton.
4. Dr. Hochman said in a news release that together the systems can invest more in the needs of people they serve, especially the most vulnerable. "Our commitment is to improve affordability, enhance clinical care and improve access to much-needed services," he added.
5. The proposed partnership is not yet final. The health systems said they are working with the California Attorney General's office on next steps and hope to complete the review and approval process in 2016.
6. In the meantime, the California Nurses Association and National Nurses United have called for a complete review of the proposal by California Attorney General Kamala Harris, according to the Times-Standard. According to the report, the labor unions are concerned the merger will negatively impact patients, taxpayers, hospital employees and the communities they serve. The groups have asked Ms. Harris to hold public hearings and a full review of the proposal.
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