L.A. COAST: Catholic Hospitals’ Joint Venture Falls Through
A joint venture that would have linked three Los Angeles-area Catholic hospitals has fallen through after eight months of talks. Modern Healthcare reports that Inglewood-based Daniel Freeman Memorial Hospital, Marina Del Ray-based Daniel Freeman Marina Hospital and Santa Monica-based St. John's Health Center would have served "a 15-mile stretch of urban beach communities near Los Angeles." The three facilities would have formed a "joint operating company," but also remained "autonomous." Observers suggested that the deal fell apart because the owners of the hospitals -- Sister's of Charity and Carondelet Health Systems -- "are all powers on their own, so it's not like splitting a loaf of bread." Also, others said "the clout the hospitals enjoyed in their communities and the strong wills of the three hospitals' executive staffs would have made dealmaking among the three hospitals difficult." Modern Healthcare notes that the "diversity of the communities served by the hospitals also would have made integration difficult." St. John's and Daniel Freeman Marina both serve "affluent" and "fitness-conscious" residents who don't utilize health care often; Daniel Freeman Memorial, on the other hand, serves "middle- to low-income residents." Steve Valentine, a consultant with Camden Group, said, "They have very different demographic bases, so it would have been a tough fit" (Shinkman, 9/14).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.