Becker's ASC Review

50 HEALTHCARE NEWS Hoag sues to end Providence affiliation By Ayla Ellison H oag Memorial Hospital Presbyterian, a two-hos- pital network based in Newport Beach, Calif., is trying to sever its ties to Renton, Wash.-based Providence. Hoag announced May 4 that it has filed a lawsuit in an attempt to dissolve its affiliation with Providence. Hoag said it filed the lawsuit aer a year of attempted negotiations. "Hoag must be able to keep local resources and deci- sion making in Orange County to address all the health needs of community members for years to come," Robert T. Braithwaite, president and CEO of Hoag, said. "e current structure of our relationship with Providence, we believe, is not in the best interest of our patients, the community, our physicians and team members." e link up dates back to 2012 when Hoag entered into an affiliation agreement with Irvine, Calif.-based St. Joseph Health, which has since been acquired by Providence, a 51-hospital system. "Under the existing affiliation, Hoag's mission and legacy are at risk of being diluted within a large na- tional hospital system," Mr. Braithwaite said. "We must be able to maintain Hoag's unique character and role as Orange County's most trusted health care network, as well as keep local control of community assets." Regarding Hoag's lawsuit, officials from Providence released the following statement: "Now, at a time when all hospitals and health systems are battling the COVID-19 pandemic, the Hoag leaders took legal action to sever its relationship with Provi- dence for reasons that remain unclear," Erik G. Wexler, chief executive of Providence St. Joseph Health's South- ern California region and CEO of Covenant Health Network, said. "Our relationship has been strong since 2012. e Hoag leaders' so-called 'realignment' plan would negatively impact patient care, diminish resourc- es and medical expertise available to Orange County." Mr. Wexler said the parties have made progess since 2012 toward fulfilling the original vision of the partner- ship, and that Providence remains focused on continu- ing to work with Hoag. "We will remain steadfast in our commitment to provid- ing quality, compassionate care to every individual we serve, and we will not be distracted by the misguided and potentially costly legal actions by the Hoag leaders," Mr. Wexler said. "We are disappointed that they filed this complaint and we believe it is without merit." n Pennsylvania hospital to close, lay off 694 if sale collapses By Ayla Ellison S teward Health Care will close Easton (Pa.) Hospital and lay off its 694 workers in June if it's unable to sell the facility, accord- ing to a Worker Adjustment and Retraining Notification Act notice filed with the state. Steward, a for-profit hospital system based in Dallas, signed a letter of intent in February to sell Easton Hospital to Bethlehem, Pa.- based St. Luke's University Health System. Officials said the layoff notice was filed with the state to prepare for the unlikely event that the transaction doesn't close. "While it is our sincere hope and belief that that the transaction will be concluded, we also want to let you know that, in the unlikely event that the transaction does not occur, we will have no alterna- tive but to close the hospital," Easton Hospital President Linda Grass wrote in the notice, according to The Morning Call. In March, Steward said Easton Hospital had faced financial chal- lenges for months and was on the brink of closing after canceling profitable elective surgeries in response to the COVID-19 pandem- ic. The company sent a letter to Pennsylvania Gov. Tom Wolf seek- ing $40 million to keep the hospital open through the end of June to provide care to COVID-19 patients, according to the report. The governor agreed to provide $8 million to keep the hospital open through April. n Amazon, JPMorgan, Berkshire Hathaway venture seeking new CEO By Laura Dyrda H aven CEO Atul Gawande, MD, stepped back from the day- to-day operations of the company and become chairman, the Wall Street Journal reported. The venture — a collaboration between Amazon, Berkshire Hatha- way and JPMorgan Chase — hired Dr. Gawande as its first CEO in 2018. However, since then the company has made relatively few revelations and Dr. Gawande now wants to focus on his policy and advocacy work. According to the report, Haven is already looking for a new CEO and could still change its leadership structure. Dr. Gawande has a background as a clinician, best-selling author and Boston-based Harvard University professor. However, he did not have experience in health insurance or running a company. WSJ reported, "Dr. Gawande chose a gradual approach of testing ideas at smaller scale first" and his lack of experience "may have led to stumbles in the venture's efforts to craft transformative programs." Since its launch, Haven has developed pilot projects to test health benefits including one with 30,000 JPMorgan employees who received the option for a flat cost of healthcare services. It has also built data systems that examine healthcare tendencies of employ- ees at the companies. n

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