Centura Health Joint Operating Agreement

Hospitals and health systems that want to form this type of membership need to know three main points, according to a legal warning from the law firm McGuireWoods. The choice of the joint operating company will likely offer no more antitrust protection than an acquisition or other structure, said Eb LeMaster, managing director of Ponder-CHI Franciscan paid more than $2.5 million last year to resolve the case. As part of the agreement, CHI must inform Franciscan Ferguson`s office of future cases that could reduce competition. Washington state lawmakers passed a law that same year requiring health care providers to notify the attorney`s office 60 days in advance of mergers, acquisitions or affiliations. Hospitals, which are looking for partners but want to maintain an appearance of autonomy, have evolved into common enterprise agreements. Several reproductive health advocates, LBGTQ and supporters of end-of-life care in Washington issued a joint statement this week saying they were “deeply concerned” that the agreement could prevent Virginia Mason`s patients from accessing certain reproductive and end-of-life care options. CHI Franciscan works under a series of Catholic health rules that prevent it from providing services such as abortion, contraception, vasectomies, tubal ligations, hormonal treatments and medical assistance in the event of death. The creation of joint operating companies such as the $4.5 billion system, Virginia Mason and CHI Franciscan, plans to educate the Seattle-Tacoma area so that suppliers can enjoy the benefits of a merger while avoiding pitfalls. In this particular case, the use of the common structure could be an attempt to separate the fortune of a Catholic organization and a secular organization. Or the systems see this as their best chance to avoid a challenge in terms of cartels and abuse of dominance. 1.

Structural characteristics. Membership in the JOA is not a real merger or transfer of capital. Instead, most JOAs are achieved by creating a new company known as a joint operating company. The YCW, usually a 501 (c) (3), serves as the parent organization of two or more affiliated hospitals and is the main administrative and financial authority, the guide states. In a joint statement, Virginia Mason and CHI Franciscan said the structure should be a projection of their collaboration to advance the health system, “by combining our enormous and complementary strengths, which is why a JOC model seems to be most useful.” The common operating structure is less widespread than a complete merger, and the Advent-Alexian agreement would be the first in the Chicago area in more than a decade. In the case of mergers, market participants are bound by their assets and have little choice but to resolve elimination disputes.

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