Hoag, Providence to end their affiliation with blessing from California AG
Hoag will become an independent entity, ending a 10-year affiliation that first showed strains during a 2020 lawsuit.
Photo: VioletaStoimenova/Getty Images
Newport Beach, California-based Hoag Memorial Hospital Presbyterian will officially end its affiliation with Washington-based Catholic health system Providence on January 31, a move that has the blessing of the California attorney general.
The systems have reached an agreement whereby Hoag will become an independent entity, ending a 10-year affiliation that first showed strains in 2020 when Hoag filed a lawsuit to separate from the 52-hospital system.
According to Kaiser Health News, Hoag said at the time the arrangement undermined local decision-making and hindered its ability to meet the needs of patients.
California Attorney General Rob Bonta today agreed this week not to object to the settlement. The AG's Office was not a party to the settlement, but finalization was contingent on any objections from the California Department of Justice.
As part of the agreement, Hoag has committed to expand reproductive health services in Orange County.
"In a time when reproductive rights are under attack, we have to take every reasonable step we can to protect and expand reproductive healthcare in California," said Bonta. "The separation of Hoag from Providence will allow two strong health systems to continue to operate, while allowing Hoag to expand access to essential reproductive care in the area."
WHAT'S THE IMPACT
In 2013, the Attorney General's Office approved the affiliation of then-St. Joseph Health System (now Providence) with Hoag. Last year, Hoag filed a lawsuit to terminate the affiliation – a move that was supported by multiple healthcare providers, advocates, and community members concerned that the affiliation was resulting in the denial of reproductive rights.
Under the terms of the settlement, Hoag will expand reproductive healthcare, including pregnancy termination in Hoag hospital-owned facilities; the creation of a formal program around family planning, contraception and management of high-risk pregnancies; recruitment of experts in family planning, contraception, and abortion to provide the full range of expert family planning services; and the recruitment of primary care and medical specialists within Hoag to provide sex-specific and gender-specific healthcare for the LGBTQ+ population.
As an independent hospital, Hoag's disaffiliation from Providence will also increase the number of high-level healthcare facilities in Orange County, which will increase healthcare competition in the area, the AG's office said.
THE LARGER TREND
When the two entities first merged they created the third-largest nonprofit health system in the country, according to the OC Register. The system has hospitals in Orange, Fullerton, Mission Viejo and Laguna Beach. At the time, the companies said they were seeking a partnership to expand services and improve clinical outcomes through shared expertise.
Providence fought Hoag's lawsuit in 2020, saying the timing was bad given the COVID-19 pandemic. Providence argued the split would negatively affect patient care and diminish the available resources and expertise in Orange County.
The health systems struck a different tone this week, saying they would work together on a seamless transition.
Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com
