Adventist Health and St. Joseph Health will partner on a new joint operating company that will integrate clinical activities and services across clinics and facilities in Northern California.
The joint operation will include a new president and CEO, and a few other positions still to be determined. A governing board of consisting of 5 appointees from each system will also be formed. Adventist and St. Joseph facilities would keep their existing hospital names, licenses, capital assets and employees.
"By establishing a network that combines the parties' footprints in this six county area, we intend to increase patients' access to care," said Kevin Klockenga, President & CEO, St. Joseph Health Northern California. "We intend to improve our ability to deliver better care on a number of fronts, including developing a comprehensive care continuum strategy; collaborating on centers of excellence, health information sharing, and care management; and developing a value based provider network."
Adventist Health President of the Northern California region Jeff Eller added that "patients will benefit from more access points, better health outcomes and controlled costs by coordinating their care across the spectrum of their health needs."
The new operation will serve municipalities of Humboldt, Mendocino, Sonoma, Lake, Napa and Solano counties.
A definitive agreement has been signed, which covers a joint venture, not a merger. The proposed operation will be under regulatory review. Officials at Adventist Health and St. Joseph Health are working toward a closing of the proposed transaction sometime later this year.
A St. Joseph Health spokesperson said details are still being worked out and it is not clear whether services at the included facilities will expand or whether the joint venture simply means patients in both systems will have access to the other system's facilities under the new network.