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Franciscan parent and PeaceHealth end talks aimed at forming regional health system

Post by John Gillie / The News Tribune on April 3, 2013 at 2:49 pm with No Comments »
April 3, 2013 2:55 pm

Tacoma’s Franciscan Health System and Vancouver, Washington’s PeaceHealth won’t be merging their Northwest health care networks after all.

The two healthcare networks initiated talks in August to ally their operations forming one of the region’s larger healthcare concerns.  But Catholic Health Initiatives, Franciscan’s parent, and PeaceHealth Wednesday announced they were suspending discussions.

“Even with their common traditions of service, CHI and PeaceHealth were unable to develop an integrated model that would provide the desired benefits and serve the best interests of both organizations,”  the two organizations said in a joint press release.Peace Health

“CHI and PeaceHealth will remain actively engaged in exploring other opportunities to work together to strengthen their respective ministries in the Pacific Northwest,” the two said.

Franciscan, Pierce County’s second largest private employer, owns St. Joseph Medical Center in Tacoma, St. Francis Hospital in Federal Way, St. Elizabeth Hospital in Enumclaw, St. Clare Hospital in Lakewood and St. Anthony Hospital in Gig Harbor.  The health care network also operates a string of clinics and specialty centers throughout the South Sound.  Its parent, CHI, operates 78 hospitals in 17 states as well as a network of long-term care facilities and other health providers.

PeaceHealth has operations in Alaska, Washington and Oregon including a network of clinics, a Medicaid health plan and nine hospitals. In Washington, PeaceHealth operates  St. Joseph Medical Center in Bellingham, St. John Medical Center in Longview, Southwest Medical Center in Vancouver and Peace Island Medical Center in Friday Harbor.

The two health networks said they will continue to explore the possibilities of working together.

“Through this (negotiation) process, CHI and PeaceHealth leaders developed a strong relationship based on the compatibility of the organizations, and they will continue to seek opportunities for growth and creative ways to better serve their communities,” they said.

The two originally had hoped to form their alliance by June 30.



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