Exclusive affiliation negotiations between Vancouver, Wash.-based PeaceHealth and two small community hospitals in northwest Washington state — Skagit Valley Hospital in Mount Vernon and Cascade Valley Hospital and Clinics in Arlington — have fallen through, according to a Puget Sound Business Journal report.
In an internal memo, PeaceHealth CEO Nancy Steiger said the two hospitals wanted to move quickly toward a final affiliation commitment, while PeaceHealth feels it would need two more years, according to the report. A Skagit Regional Health news release indicates PeaceHealth's "need to focus on performance" and the higher-than-expected cost of an Epic information technology system installation played a part in the health system's request for a significant delay in proceeding with the deal.
All of PeaceHealth's work with the hospitals will stop, aside from an ongoing cardiovascular services collaboration with Skagit Valley. Both hospitals asked for and received permission to exit their exclusive negotiating agreement with PeaceHealth, although Ms. Steiger has indicated she only considers the deal delayed, according to the report.
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