Federal Way Medicare Advantage plan provider Soundpath Health has sold a majority interest in its business to Colorado’s Catholic Health Initiatives.
The deal’s completion is awaiting approval by the Washington State Insurance Commissioner. Catholic Health Initiatives paid more than $24 million for its stake in Soundpath.
Catholic Health Initiatives is the parent of Tacoma’s Franciscan Health System. Franciscan is the owner of a handful of hospitals in the South Sound including St. Joseph Medical Center in Tacoma, St. Francis in Federal Way, St. Anthony in Gig Harbor, St. Clare in Lakewood and St. Elizabeth in Enumclaw. Franciscan is in the process of forming an alliance with two other local hospitals, Bremerton’s Harrison and Highline in Burien.
Under the agreement, Soundpath Health, owned by Physicians of Southwest Washington and Northwest Physicians Network, will transfer a majority interest in Soundpath Health to an affiliate of Cathilic Health Initiatives, which will manage and operate Soundpath.
“Knowing that greater collaboration is the future of health care, Soundpath Health and its owner provider groups have been looking for the right partner for several years. We evaluated many different options and with the support, direction and vision of CHI we feel we have found the right partner to continue to support our local mission to serve and support people with Medicare,” said Mariella Cummings, CEO of Physicians of Southwest Washington and chair of Soundpath Health board of directors.
Soundpath Health operations will not be affected by the change in ownership, Soundpath said in a press release.
Gale Robinette, Franciscan spokesman, said Franciscan’s hospital and clinic network will continue to serve Soundpath patients as it does those with other Medicare Advantage plans.