Rideout Health, Adventist Enter Affiliation

John Commins, October 9, 2017

Rideout Health is a non-profit community health system based in Marysville, CA, with an acute care hospital, clinics and ancillary services located throughout Yuba and Sutter Counties.

Adventist Health has reached an affiliation agreement with Marysville, CA-based Rideout Health that should be finalized in early 2018, the two non-profit health systems announced.

Financial terms were not disclosed.

“We are excited to welcome Rideout Health to the extended Adventist Health family,” Adventist Health CEO Scott Reiner said in a media release. “We are confident that this affiliation will have a positive impact on patients and the broader Yuba City/Marysville community; we intend to grow the market with a focus on whole-person care and access to expanded healthcare options.”

“Under the affiliation, Rideout and Adventist will enter into a ‘membership substitution’ agreement,” Adventist explained in an email exchange with HealthLeaders Media.

“Before the agreement, the local community was the sole member of Rideout Health, but now Rideout will be substituting Adventist Health into that role as a nonprofit organization,” Adventist said. “Adventist Health will take responsibility for all the obligations and trust of the community’s asset. When it substitutes, it becomes part of Adventist Health’s obligated group, which in essence backs up all the financing and debt that the organization has had.”

Adventist said “it’s still too early to tell” if there will be leadership changes at Rideout. “Once the paperwork is submitted, the attorney general will have about three and a half months to approve the deal or deny it,” the health system said. “Adventist will not take over operations until after that occurs. In the meantime, Adventist plans on working through a transition plan and conducting an assessment to see what the local organization’s needs are and will eventually make its recommendations on potential changes.”

The existing Rideout board of trustees will remain intact, but there are plans to add new members from Adventist. There are no plans to displace Rideout employees.

Rideout Health is comprised of the 219-bed Rideout Regional Medical Center, an acute care hospital; the Heart Center at Rideout; Rideout Cancer Center, which is affiliated with UC Davis Health; outpatient clinics and a host of ancillary services including: senior living services located throughout the Yuba-Sutter County.

“Through affiliation with Adventist Health and our efforts together, we will continue to advance our mission of delivering exceptional healthcare to our family, friends and neighbors,” said Rideout Health board chair, Janice Soohoo Nall.

Roseville, CA-based Adventist Health includes 19 hospitals, more than 280 clinics, 13 home care agencies, seven hospice agencies and four joint-venture retirement centers along the West Coast and Hawaii.

John Commins

John Commins is a senior editor at HealthLeaders Media.

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