Three California health systems have joined a new statewide healthcare network designed to pursue managed-care contracts with larger employer groups.
Dubbed the California Health Network, the venture began as a joint arrangement between Adventist Health System/West and Loma Linda University Medical Center in Southern California. Last week, Sharp HealthCare in San Diego, Sutter Health of Sacramento and California Healthcare System of San Francisco announced they would affiliate with the network.
Though terms of the venture weren't disclosed, health systems will share ownership of the network, but will not engage in a full merger, system executives said.
To offer geographically appealing healthcare services to employers with offices throughout the state, the network will have to link with hospitals, physician groups and possibly health plans in Los Angeles and Orange counties and the Central Valley. Executives said they are negotiating network relationships with other healthcare organizations in Southern California, which they wouldn't identify.
Some 24 hospitals will participate in the network, along with 14,509 affiliated physicians covering 1.2 million managed-care enrollees. The system members have combined assets of $4 billion.