SPOKANE, Wash.—Community Health Systems, Franklin, Tenn., signed a nonbinding letter of intent to form an integrated healthcare delivery system in Spokane 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 and Idaho. Community entered the Spokane market last year with its $148 million purchase of two-hospital Empire Health Services. 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 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.
Regionals: Rockwood Clinic to become a subsidiary of Community Health Systems and more news ...
OREGON CITY, Ore.—An affiliation agreement between Willamette Falls Hospital in Oregon City and Providence Health & Services got the green light from Oregon Attorney General John Kroger, and the hospital changed its name to Providence Willamette Falls Medical Center. The 91-bed, not-for-profit community facility chose to join Providence Health & Services in May. Providence Health is a not-for-profit faith-based system operating in five Western states. As part of the deal, Providence Health agreed to contribute $55 million to a capital investment fund for the hospital, as well as $3.5 million to the hospital’s foundation. “We are excited to move forward with this new partnership with Providence,” said Russ Reinhard, Providence Willamette Falls president and CEO, in a written statement.
SUN CITY, Ariz.—MedCath Corp., Charlotte, N.C., said Banner Health, Phoenix, purchased an Arizona cardiac center from a 60-40 partnership of MedCath and other investors, including physicians, for $16.9 million, effective Sept. 30. The Sun City Cardiac Center is adjacent to 365-bed Banner Boswell Medical Center; Banner acquired the hospital last year, when it purchased two-hospital Sun Health. MedCath bought its stake in the facility in 1992. In addition to its share of the sale proceeds, MedCath also will lease some of the center’s equipment to Banner for three years. Banner owns 21 hospitals and contract-manages one. MedCath owns an interest in and operates nine hospitals in seven states, and is developing a 10th hospital in Kingman, Ariz.
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