Greater Newport (Calif.) Physicians, a 400-doctor, multispecialty independent practice association, announced that it will affiliate with MemorialCare Health System's MemorialCare Foundation medical management organization, effective March 1.
As part of the deal, Greater Newport Physicians' affiliated management services organization—the 400-employee Nautilus Healthcare Management Group—will be acquired by MemorialCare, a five-hospital, Fountain Valley, Calif.-based system.
MemorialCare CEO Barry Arbuckle told Modern Healthcare that no terms were being disclosed and that, by California law, it cannot acquire the group itself. The deal was approved by shareholders of both organizations the evening of Feb. 27, he said.
MemorialCare has 3,000 aligned physicians practicing under a variety of “partnership options,” including the foundation's MemorialCare Medical Group, which has 135 doctors working under an “employment-type affiliation,” according to a MemorialCare news release. Arbuckle said these options now include an IPA arrangement.
“It's just another vehicle we can offer to physicians as this model continues to change,” he said.
Many patients seeing doctors with the Greater Newport Physicians group historically have received care at Hoag Memorial Hospital Presbyterian in Newport Beach, Calif., and Arbuckle said this won't change.
“We will not interfere with the physician-patient relationship,” he said. “For existing patients who have historically chosen to go to Hoag, they still may.”
The deal with Memorial Care was announced a day after Greater Newport Physicians announced it will form an accountable care organization with Hoag Memorial and Blue Shield of California.
The three-year ACO agreement must still be approved by the California Department of Managed Health Care.
“It's largely coincident in timing,” Arbuckle said, adding that MemorialCare knew “for weeks” that the Newport doctors were in talks to form an ACO with another hospital.
“We're in support of it,” Arbuckle said, adding that MemorialCare's support of the ACO with Hoag underlines how MemorialCare's deal with the Greater Newport Physicians “is not about redirecting business from Hoag.”
Last April, MemorialCare expanded its presence in the area by acquiring 71-bed Community Hospital of Long Beach (Calif.).
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