Providence St. Mary Medical Center and Kaiser Permanente expressed disappointment with conditions set by the California attorney general on their proposed partnership that involves building a new hospital, The Victorville Daily Press reported Jan. 25.
California Attorney General Rob Bonta recently approved the partnership between Oakland, Calif.-based Kaiser Permanente and Apple Valley, Calif.-based Providence St. Mary Medical Center with several conditions. The partnership would allow the two organizations to create a new company, of which St. Mary will have 70 percent ownership and Kaiser will have 30 percent. The two will also build a new 47-bed hospital in Victorville, Calif., as part of the partnership.
The conditions attached to the approval included that the organizations must remain independent, put price caps on current St. Mary contracts, reduce profit-sharing and lessen the discount St. Mary's gives Kaiser on its reimbursement rates.
Providence said both healthcare providers remain "disappointed" by the restrictions, and they limit the ability of both parties to move forward with the partnership. Providence added that the restrictions would place the hospital at a distinct disadvantage and impose many uncertain future obligations.
"We are disappointed the attorney general's office has made our vision difficult to pursue under the current restrictions, which put at risk the future operation," Providence Southern California CEO Kevin Manemann told the Press. "We are strongly committed to the High Desert community and are currently evaluating next steps."
Kaiser also said the conditions placed on the partnership would make it "impossible to go forward."
"We remain dedicated to ensuring our members have access to great hospital care in the High Desert," Julie Miller-Phipps, president of Kaiser Permanente Southern California and Hawaii Health Plan and Hospitals, told the Press.