Two Denver hospitals work to create joint venture

Two not-for-profit hospitals in Denver are working toward an agreement that would allow them to jointly manage inpatient and outpatient services.

National Jewish Health and SCL Health System, parent of 371-bed Exempla St. Joseph Hospital, have signed a letter of intent that will create a jointly owned entity that will provide clinical services and research at St. Joseph (PDF).

St. Joseph is building an 831,000-square-foot replacement hospital, and both clinical teams will provide services there, according to William Allstetter, a spokesman at National Jewish Health.

A board including leaders from both organizations will oversee the joint operating company, which will operate clinical services at St. Joseph and 46-bed National Jewish Health. Each hospital, though, will retain its own assets, the release said. For example, the agreement does not include SCL's other hospitals or certain research and educational operations of National Jewish Health. The hospitals will also retain their separate brands.

The parties expect to finalize the deal in the first quarter of 2014, according to a news release.

The joint venture will focus on providing “high-quality, affordable healthcare” as well as medical education and training, the release added. National Jewish Health will bring its expertise in respiratory, cardiac and immune system disorders.

The agreement also could pave the way for the systems to experiment with new care-delivery models like accountable care organizations and patient-centered medical homes. Cheston Turbyfill, a spokesman for SCL, said the system has already been moving in that direction.

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