Community Health Systems, Franklin, Tenn., has signed a nonbinding letter of intent to form an integrated healthcare delivery system in Spokane, Wash., with Rockwood Clinic, a 133-physician multispecialty clinic based in Spokane, the clinic said. Terms of the deal were not disclosed. Rockwood has 32 clinical sites throughout eastern Washington. Community entered the Spokane market last year with its $148 million purchase of two-hospital Empire Health Services.
Community Health seeks deal with Wash. clinic
Rockwood Clinic would become a subsidiary of the integrated system, but would retain its brand name, staffing, management and governance by a board of directors drawn from the physician members of the clinic, Rockwood said. A strategic planning committee will guide the integrated system, with members drawn from Rockwood, the two hospitals' boards, medical staff and executives, Rockwood said.
The deal is expected to be completed by the end of the year, Rockwood said. The clinic said it does not expect that the deal will require regulatory approval, but due diligence, license transfers and other conditions must be met for the deal to close. Community declined to comment, because of a company policy of not commenting on nonbinding agreements, Community spokeswoman Tomi Galin said.
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