ValleyCare Health System, based in Pleasanton, Calif., has signed a letter of intent to affiliate with Stanford (Calif.) Hospital & Clinics, according to a San Francisco Business Times report.
Under the tentative agreement, ValleyCare would become a subsidiary of Stanford Hospital, according to the report. ValleyCare would retain its medical staff, although its physician organization would become part of Stanford's University Healthcare Alliance.
ValleyCare has been experiencing financial problems in recent years. In 2012, ValleyCare posted a $2.1 million operating loss, a year after it posted a $4.7 million operating loss. In March, ValleyCare named Scott Gregerson its new CEO. Mr. Gregerson took over for Marcy Feit, who resigned from her position in early February. The health system began the process of finding a potential affiliation partner in April.
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