San Joaquin General Hospital in French Camp, Calif., signed a letter of intent to begin negotiations on a long-term affiliation agreement with CommonSpirit Health's Dignity Health, the California hospital announced Aug. 2.
Under the letter of intent, the parties will explore affiliating through a management service agreement "or such other structure as the parties may propose, and such other ancillary agreements as may be necessary."
The goal of the partnership is to ensure that San Joaquin General Hospital is a financially secure facility and can continue providing care to its community, according to a news release.
"San Joaquin County is pleased to announce this partnership with Dignity Health that will allow San Joaquin General Hospital to remain viable as a provider of cost-effective quality healthcare," said Tom Patti, chair of the San Joaquin County board of supervisors. "Due to the pandemic and a variety of other fiscal considerations, SJGH will require access to clinical, operational, educational, and financial assistance that could only be provided by entering into an agreement with an established, successful health care system. We believe this affiliation will be significantly beneficial to all parties, but especially to patients and staff at SJGH by providing a more financially-secure hospital setting which offers more sustainable care over the long term."
The parties expect to reach a final agreement in six to nine months.
CommonSpirit Health is headquartered in Chicago. Dignity Health is part of CommonSpirit and is based in San Francisco.