TACOMA, Wash. and SEATTLE, July 16,
2020 /PRNewswire/ -- Washington-based health systems, CHI
Franciscan and Virginia Mason, along with CommonSpirit Health, the
parent company of CHI Franciscan, announced today they have signed
a Memorandum of Understanding (MOU) to explore combining the two
health systems through a formation of a Joint Operating Company.
The organizations would bring together the best-performing elements
from each entity to build a transformative health system for the
communities it serves and beyond.
"CHI Franciscan and Virginia Mason have partnered closely in
recent years and through this collaboration it has become clear
there is much more we can do together," said Ketul J. Patel, CEO of CHI Franciscan and
president of the Pacific Northwest Division at CommonSpirit Health.
"We've admired each other's desire to lead in improving the way
health care is delivered, and we've recognized an incredible
opportunity to do so together. We are confident that in building
the health system of the future, we will reimagine care delivery in
the Puget Sound region and beyond."
"We looked at a variety of models and partnerships and, through
our existing affiliation with CHI Franciscan, came to the clear
conclusion that combining our organizations to form a new health
system would allow us both to shape health care nationally and
continue our focus on the patient experience," said Gary S. Kaplan, MD, chairman and CEO of Virginia
Mason. "Our combined health system would increase our ability to
provide the highest quality care to our patients in the Puget Sound
region and in central Washington.
There is much to be determined in the coming months as we hopefully
transition toward a final agreement, but we are aligned on the
vision and the strategy to achieve it."
The new organization would be agile and market-responsive,
reducing waste and aligning across the system to always have the
patient's best interest in mind. With a focus on developing
innovative models of care delivery that enhance quality and the
patient experience while expanding access points, the new
organization would make it easier for patients to get the
personalized care they need, no matter which facility they enter.
The combined health system would serve as a prototype of care
innovation nationally.
In recent years, CHI Franciscan and Virginia Mason have
partnered on obstetric and women's health, as well as radiation
oncology. These partnerships have elevated both access and
continuity of care for patients and demonstrated the impact that is
possible when the two systems work together.
Each organization already focuses heavily on demonstrating
excellence in quality, safety, the customer experience and as a
result, excels in national performance measures. Combined, the new
organization would have the highest quality outcomes in the region
and the opportunity to invest in customer-centric innovation.
Patients would have access to the best minds and science in health
care, and communities would benefit from solutions created to
address access barriers, disparities and inequities in care, and
the very best health and health care outcomes.
The new health system would be led by Ketul Patel and Dr. Gary
Kaplan as CEOs and each organization would receive an equal
number of board seats. The combined organization would operate 12
hospitals and more than 250 sites of care, including same-day
surgery centers, Benaroya Research Institute at Virginia Mason,
Bailey-Boushay House, and the
Virginia Mason Institute. If combined, CHI Franciscan and Virginia
Mason would employ more than 21,000 team members and staff,
including nearly 5,000 employed and affiliated providers.
"Throughout our history, the nationally recognized performance
of Virginia Mason has been a source of great pride. While we have
been independent, this is a tremendous opportunity that increases
our ability to provide our high-quality patient care to new
communities," said Tod Hamachek,
chairman of the board of directors for Virginia Mason Health System
and Virginia Mason Medical Center.
"Founded 130 years ago by the Sisters of St. Francis of
Philadelphia, CHI Franciscan has
served its communities by providing compassionate, high-quality
care to those in need, especially those who are vulnerable. Our
relationship with Virginia Mason is another meaningful step forward
in this journey," said Dr. Uli Chi,
chairman of the board of directors for CHI Franciscan.
The organizations have been engaged in evaluation and planning
and hope to finalize that process by the end of 2020. For now, all
patients will continue to have access to their same site of care
and will continue to use their current insurance plans. Each
organization will share updates with patients well in advance of
any changes taking place. Updates can be found at
www.innovativecareahead.org.
About CHI Franciscan
CHI Franciscan is a Catholic nonprofit health system based in
Tacoma, Washington, with
$2.45 billion in total revenue and a
team of more than 12,500 physicians, advanced practice providers,
nurses, and staff who provide expert, compassionate medical care at
10 hospitals and over 220 primary and specialty care clinics
throughout the greater Puget Sound. This includes St. Anthony
Hospital, Gig Harbor; St. Clare
Hospital, Lakewood; St. Elizabeth
Hospital, Enumclaw; St. Francis
Hospital, Federal Way; St. Joseph
Medical Center, Tacoma; St.
Michael Medical Center, Bremerton
and Silverdale; St. Anne Hospital,
Burien; CHI Franciscan
Rehabilitation Hospital, Tacoma,
and Wellfound Behavioral Health Hospital, Tacoma. Started in 1891 by the Sisters of St.
Francis of Philadelphia, today CHI
Franciscan is one of the largest health systems in Washington state. The system is comprised of
more than 1,250 hospital beds and over 4,000 credentialed providers
offering cardiovascular care, cancer care, orthopedics and sports
medicine, neurosciences, women's care and other health care
services. CHI Franciscan's mission is to create healthier
communities, including caring for the poor and underserved. In
fiscal year 2019, the organization provided nearly $200 million in community benefit—free,
subsidized, and reduced cost health care and programs. Follow CHI
Franciscan on Facebook facebook.com/chifranciscan,
Twitter @CHIFranciscan and
Instagram @chi.franciscan.
About Virginia Mason Health System
Virginia Mason, founded in 1920, is a nonprofit regional health
care system based in Seattle that
serves the Pacific Northwest. In the Puget Sound region, the system
includes 336-bed Virginia Mason Hospital; a primary and specialty
care group practice of more than 500 physicians; outpatient medical
facilities and services in Seattle, Bainbridge
Island, Bellevue,
Edmonds, Federal Way, Kirkland, Issaquah and Lynnwood; Bailey-Boushay House, the first skilled-nursing
and outpatient chronic care management program in the United States designed specifically to
meet the needs of people with HIV/AIDS; Benaroya Research
Institute, which is internationally recognized for autoimmune
disease research; Virginia Mason Foundation; and Virginia Mason
Institute, which trains health care professionals and others around
the world in the Virginia Mason Production System, an innovative
management method for improving quality and safety.
Virginia Mason Health System also includes Virginia Mason
Memorial, a 226-bed hospital serving Yakima Valley in central
Washington since 1950. Virginia
Mason Memorial includes primary care practices and specialty care
services, including high-quality cardiac care; cancer care through
North Star Lodge; breast health at `Ohana Mammography Center; acute
hospice and respite care at Cottage in the Meadow; pain management
at Water's Edge; an advanced NICU unit that offers specialty care
for at-risk infants; advanced services for children with special
health care needs at Children's Village; and The Memorial
Foundation.
About CommonSpirit Health
CommonSpirit Health is a nonprofit, Catholic health system
dedicated to advancing health for all people. It was created in
February 2019 by Catholic Health
Initiatives and Dignity Health. With its national office in
Chicago and a team of
approximately 150,000 employees and 25,000 physicians and advanced
practice clinicians, CommonSpirit Health operates 137 hospitals and
more than 1000 care sites across 21 states. In FY 2019, Catholic
Health Initiatives and Dignity Health had combined revenues of
nearly $29 billion and provided
$4.45 billion in charity care,
community benefit, and unreimbursed government programs. Learn more
at commonspirit.org.
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SOURCE CHI Franciscan