14. September 2021
Centura Health Joint Operating Agreement
Virginia Mason and CHI Franciscan are said to have 10 acute hospitals and a turnover of $US 4.5 billion, slightly more than the region`s biggest competitor: Providence, based in Renton, Washington, which has eight hospitals in the region, including five that it took over in 2012 when it bought Swedish Health Services. Healthcare systems are turning to common operational structures that are increasingly flexible in the search for new fusion partners, with Virginia Mason and CHI Franciscan being the latest example. The proposal by two Chicago-area hospital systems to create a joint operating company could create a financially larger operation, while creating a potentially deadly weakness. „There`s probably a clearer line of sight for terminating the (deal),“ says Anu Singh, senior vice president at Kaufman Hall & Associates Inc., a Skokie-based health consulting firm. It is possible that Catholic belonging also plays a role. The Catholic Church might want to prevent an affiliated organization from connecting with a secular organization, although Virginia Mason has agreed to stop some reproductive health and euthanasia services, said Dan Howell, director of health and life sciences at West Monroe Partners in Seattle. In a joint statement, Virginia Mason and CHI Franciscan said the structure should be a projection of their cooperation to „advance healthcare by combining our huge and complementary strengths, so that a YCW model seems the most sensible.“ While the parties keep their assets separately, regulators would likely still consider Virginia Mason and CHI Franciscan as a single player, provided the joint operating company is truly a decision-making body, Zall said. A joint venture failed in Waukegan 12 years ago, when Provena left Vista Health health and withstood the consolidation costs of Provena St. Therese Hospital and Victory Memorial Hospital. In 2006, Vista was planned by the Franklin, Tennessee-based office of Community Health Systems Inc. ferguson to reconsider any transaction between Virginia Mason and CHI Franciscan if the parties reach an agreement to ensure it „does not significantly reduce competition and harm Washingtonians, which is contrary to antitrust laws,“ spokeswoman Brionna Aho wrote in an email.
JOas are transactions between two hospitals or health systems in which the two parties are linked but operate independently of each other on certain aspects, for example. B in maintaining power over the board of directors and assets.