“Catholic Health Initiatives and PeaceHealth share common cultures and values,” CHI President and CEO Kevin Lofton said in the news release (PDF). “We see this as a natural evolution—a perfect way to share economies of skill and scale, improve health services and reinforce our common mission to create and nurture healthier communities.”
Officials said they'll form the new system before June 30, 2013 and that CHI and PeaceHealth will be equal partners in the fully-integrated health system. They estimate the new organization has combined annual revenues of almost $4 billion.
The healthcare reform law, which mandates providers to assume more risk in caring for populations, including Medicaid patients, was a factor in making the deal, officials said, who wanted to expand their organizations' size and scale.
Seven CHI hospitals are part of the deal: Mercy Medical Center, Roseburg, Ore.; and St. Anthony Hospital, Pendleton, Ore.; St. Joseph Medical Center, Tacoma, Wash.; St. Francis Hospital, Federal Way, Wash.; St. Clare Hospital, Lakewood, Wash.; St. Anthony Hospital, Gig Harbor, Wash.; and St. Elizabeth Hospital, Enumclaw, Wash. CHI's Franciscan Medical Group and Franciscan Hospice and Palliative Care are also included.
The eight hospitals of PeaceHealth that are part of the deal are PeaceHealth Cottage Grove (Ore.) Community Hospital; PeaceHealth Peace Harbor Hospital in Florence, Ore.; PeaceHealth Sacred Heart Medical Center at RiverBend in Springfield, Ore.; and PeaceHealth Sacred Heart Medical Center, University District in Eugene, Ore.; PeaceHealth St. Joseph Medical Center in Bellingham, Wash.; PeaceHealth St. John Medical Center in Longview, Wash.; and PeaceHealth Southwest Medical Center in Vancouver, Wash., and PeaceHealth Ketchikan (Alaska) Medical Center.