Two major hospital systems in Western Washington are combininginto what will become the largest medical provider in the state.
Perhaps as early as next year, Seattle's Swedish Health Serviceswill affiliate with Catholic hospital group Providence Health &Services, creating a super-sized organization officials hope canwithstand the financial uncertainties of health reform and continueproviding top-tier medical services.
The move will make Providence the fifth largest nonprofit healthcare organization in the country. It operates several divisions -including Providence Health Care in Eastern Washington, which runsSacred Heart Medical Center and Holy Family Hospital in Spokane.
The affiliation with Swedish is not expected to alter the day-to-day operations of the Eastern Washington group.
Rather, the five Swedish hospitals and its dozens of clinics willwork closely with Providence properties in Western Washington in aseparate division.
Both nonprofit hospital systems have been treating patients inWashington for more than a century. Swedish was started by theNordstrom family and will retain its identity and status as a non-religious hospital system.
Mike Butler, executive vice president and chief operating officerfor Providence, said the agreement will be reviewed by the FederalTrade Commission for anti-trust concerns.
Under the agreement, the two hospital groups will create a newnonprofit organization. Butler said 10 directors of Providence'sexisting board will be kept. Swedish will appoint five. The boardwill oversee all of Providence's operations, finances and policiesacross the country.
No money is being exchanged as part of the affiliation.Executives from both institutions declined to describe thearrangement as a merger or acquisition.
Dr. John Koster, chief executive of Providence, called the move a'local solution to a national problem.'
'Health care in this country is at a crossroads,' said Dr. RodHochman, CEO of Swedish. 'Having served (Seattle) for more than acentury, we believe it is our responsibility to lead the regionthrough these challenging times.'
