Hoag Memorial Hospital Presbyterian in Newport Beach, Calif., and Providence, a Catholic health system based in Renton, Wash., will end their affiliation by Jan. 31.
Five things to know:
1. In a joint statement, the healthcare systems said they reached an agreement that would allow Hoag to become an independent entity after being affiliated with Providence for nearly 10 years, according to the OC Register.
2. Hoag filed a lawsuit in 2020 to split from the 52-hospital system. Hoag cited several reasons for wanting to end the affiliation. It said the affiliation undermined local decision-making and constrained its ability to meet the needs of local patients.
3. Providence fought Hoag's lawsuit to end the affiliation. It said Hoag doesn't have the right to unilaterally dissolve the affiliation, and its board members didn't have the authority to file the lawsuit. An Orange County Superior Court judge rejected Providence's argument Feb. 1, 2021.
4. "Although we are formally parting ways, we will have other opportunities to work together on behalf of the community,” Erik Wexler, Providence's president of operations, said in a news release. "We look forward to future collaborations with our colleagues at Hoag, whom we continue to hold in high regard."
5. California Attorney General Rob Bonta's office said Jan. 10 that his office will not object to the separation agreement reached by the two health systems. This was the final hurdle to ending the affiliation.