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Analysis

Cedars-Sinai Partnering with Providence on Tarzana Hospital

By Steven Porter  
   March 13, 2019

A major expansion project that has been underway at the facility is expected to be completed in about three years.

Two major healthcare nonprofits in southern California said Tuesday they will work together to jointly own and operate a hospital in Tarzana, where Providence St. Joseph Health has been working on a $540 million expansion project.

Providence, a 51-hospital Catholic health system, acquired the hospital in 2008 and has been upgrading its facilities and constructing a new patient care wing and emergency department. Under the terms of a new partnership, the hospital will be renamed and jointly run with Los Angeles–based Cedars-Sinai.

"Rather than duplicating resources, we are working together to bring the latest, state-of-the-art advances to the community," said Mike Butler, president of operations for Providence, in a statement. "It's an innovative way to invest in the healthcare needs of the future to ensure high-quality, affordable care for those in need."

Cedars-Sinai President and CEO Thomas M. Priselac said in the statement that the continuum of care in the San Fernando Valley will be enhanced by the two systems combining their resources and talent.

"We're delighted that this partnership will have such a meaningful impact on the health of our region," Priselac said.

A spokesperson for Providence tells HealthLeaders the venture wil bring a new level of specialists to the valley, serving patients who had previously traveled into Los Angeles for higher-level care, which will be especially helpful to patients recovering after transplant procedures.

A spokesperson for Cedars-Sinai declined to disclose how much it plans to contribute financially to the Providence Cedars-Sinai Tarzana Medical Center expansion. The joint statement noted that Providence will retain a controlling interest in the facility, which will retain its Catholic identity.

Although there are Cedars-Sinai health centers throughout the region, this venture marks Cedars-Sinai's first hospital investment in the San Fernando Valley, as the Los Angeles Daily News' Ariella Plachta reported.

Providence and Cedars-Sinai said in their statement that they will begin to consult in the coming year on a broad offering of services in the valley.

Dale Surowitz, CEO of the 249-bed Tarzana hospital—which ranks among Healthgrades' 50 top hospitals—told the Daily News that this deal has been in the works since fall 2017.

The expansion project is expected to be completed in 2022.

“Rather than duplicating resources, we are working together to bring the latest, state-of-the-art advances to the community.”

Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.

Photo credit: Image rendering of expansion project provided by Providence Cedars-Sinai Tarzana Medical Center


KEY TAKEAWAYS

Providence will retain a controlling interest in the hospital, which will retain its Catholic identity.

An expansion project that's already underway will continue, with an anticipated completion date in 2022.


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