Business Roundup: Summa Health Finds a Partner

Cincinnati-based Catholic Health Partners and Akron-based Summa Health System have signed a letter of intent to create a strategic partnership, the two Ohio health systems announced.

Summa announced in July that it was looking for a like-minded, larger non-profit partner to enhance its service lines and other strategic initiatives and to strengthen its financial position. Under such a partnership, Summa would give its new partner a minority stake in the organization but Summa would retain majority ownership and local control. Final negotiations to secure the partnership that are expected to be completed by this summer.

"When we began this process, we were very clear that we would only enter into an agreement with a non-profit organization that shared our mission, vision and values," Tom Strauss, Summa president/CEO, said in prepared remarks. "While there still is a great deal of work to be done during the next several months to finalize a partnership, I believe that CHP shares our view that the way healthcare is delivered in our nation must change. At Summa, we are well positioned for future success, but together with CHP, I believe that we can truly be transformational."

Summa is in the midst of a three-year strategic planning process in anticipation of the myriad changes and challenges that healthcare is undergoing with the Patient Protection and Affordable Care Act, payment reforms, and other sweeping challenges.

The health system has launched a performance improvement initiative to become more efficient throughout the organization, which the health system said offers "clear synergies with CHP around the areas of care redesign, revenue cycle, supply chain and enhanced productivity that will help us realize more efficiencies and value for our community."

That "common vision" for care delivery notes that:

• Both organizations have Accountable Care Organizations participating in the federal government’s Medicare Shared Savings Program.
• Both organizations have embraced a Patient Centered Medical Home strategy with several practices being certified as National Committee for Quality Assurance Level 3 medical homes.
• Both organizations are transitioning to value-based payments through initiatives such as the Center for Medicare & Medicaid Innovation’s Bundled Payment pilot and the Centers for Medicare & Medicaid Services’ Partnership for Patients.

Summa board Chairman Norman Wells, Jr. said in a media release that officials had spoken with "several national healthcare organizations" in the vetting process before choosing Catholic Health Partners as "the right group to join us on our journey to transform the delivery of healthcare."

PA Court OKs Hallmark Affiliation with Jefferson Regional MC
The Orphan’s Court of Allegheny (PA) County has approved Highmark Inc.’s affiliation with Jefferson Regional Medical Center, which brings Highmark once step closer to an affiliation with West Penn Allegheny Health System.

Highmark says the ruling clears the way for Jefferson to be affiliated with Highmark and parent organization UPE, a 501 (c) (3) organization no later than March 1. West Penn Allegheny Health System's affiliation with Highmark and UPE only requires approval from the Pennsylvania Insurance Department to be able to close.