Ready to Build a National Model for Effective, High-Quality, and Compassionate Care

(February 28, 2013, Orange County, Calif.) — St. Joseph Health and Hoag announced formal completion of an unprecedented affiliation, laying the foundation for sweeping changes in the delivery and accessibility of high-quality health care. Known as Covenant Health Network (CHN), the affiliation will be a regional leader and national model, reaching from Orange County to the High Desert.

The California Office of the Attorney General consented to the affiliation on February 8, 2013, capping comprehensive evaluation and planning that began after both organizations announced their intention to affiliate in August 2012.

Hoag and St. Joseph Health have agreed that Richard Afable, M.D., will serve as president and chief executive officer for CHN. Additionally, Deborah Proctor, president and chief executive officer of St. Joseph Health has announced that Dr. Afable will also serve as executive vice president of the Southern California region of St. Joseph Health. Dr. Afable has served as Hoag’s president and CEO since 2005. Hoag’s board of directors appointed Robert Braithwaite, Hoag’s chief operating officer, to succeed Dr. Afable as Hoag’s new president and CEO.

Says Dr. Afable, “Drawing upon the strengths of this unprecedented affiliation, we will improve coordination of the delivery of health care to all members of the communities we serve. The nation’s current model of health care delivery is broken, leaving far too many families and individuals – including tens of thousands right here in Orange County – without regular and reliable access to affordable, quality care. Our number one focus will be solving the systemic health care access and affordability issues currently facing patients, employers and health care providers – and that effort begins today.”

“This affiliation is a catalyst to extend our mission and make a real difference in health care delivery by assuring a system of highly-connected, quality services,” Proctor says. “New access points will be developed to enhance community wellness and allow more people to benefit from the research and advanced care of seven exceptional hospitals, a vast network of doctors, clinics, and other partners who share our vision. We believe St. Joseph Health and Hoag have the foresight and expertise to address some of the greatest needs and accomplish the greatest good for Orange County and the High Desert. This is a critical step for the future of our communities that can only be accomplished by the brightest minds and the biggest hearts in health care.”

The new network will include the flagship hospitals of St. Joseph Health (5) and Hoag (2), in addition to an expansive physician network and numerous outpatient and urgent care facilities in Orange County and the High Desert. Physicians and staff members will develop solutions and innovative services that neither Hoag nor St. Joseph Health could achieve alone, including:

• Focusing on preventative health and wellness programs and services.
• Increasing access to health care services for the poor and vulnerable populations of Orange County.
• Achieving better clinical outcomes and improving the overall patient experience.
• Extending care beyond the acute hospital setting, including long-term care, and palliation of suffering.
• Advancing population health and fee-for-value systems while developing additional health care services that eliminate the need for people to leave Orange County to receive quality care.
• Addressing the cost challenge of providing and receiving quality services; specifically, new insurance products will be designed and brought to market in collaboration with health plans.

Hoag and St. Joseph Health are retaining their individual identities and faith affiliations – Presbyterian and Catholic, respectively.

In discussions leading up to the affiliation, the two organizations recognized many important similarities. They are both non-profit, faith-based health care organizations, committed to providing the highest quality, affordable, and accessible health care services in the community. Both have also achieved widespread recognition through thoughtful planning of their networks of services, fostering an environment of “best practice” health care, and reaching out to vulnerable populations with extensive community benefit programs.

About Hoag Memorial Hospital Presbyterian
Hoag is an approximately $1 billion nonprofit, regional health care delivery network in Orange County, California, that treats nearly 30,000 inpatients and 350,000 outpatients annually. Hoag consists of two acute-care hospitals, seven health centers, and five urgent care centers. Hoag Hospital Newport Beach, which has served Orange County since 1952, and Hoag Hospital Irvine, which opened in 2010, are designated Magnet hospitals by the American Nurses Credentialing Center (ANCC). Hoag offers a comprehensive blend of health care services that includes five institutes providing specialized services in the following areas: cancer, heart and vascular, neurosciences, women's health, and orthopedics through Hoag’s affiliate, Hoag Orthopedic Institute. Hoag has been named one of the Best Regional Hospitals in the U.S. News & World Report Metro Edition. National Research Corporation has endorsed Hoag as Orange County’s most preferred hospital for the past 16 consecutive years and, for an unprecedented 16 years, residents of Orange County have chosen Hoag as the county’s best hospital in a local newspaper survey. Visit www.hoag.org for more information.

About St. Joseph Health
St. Joseph Health (SJH) is a $4.4 billion not-for-profit integrated Catholic health care delivery system sponsored by the St. Joseph Health Ministry. SJH’s comprehensive range of services includes 14 acute-care hospitals, home health agencies, hospice care, outpatient services, skilled nursing facilities, community clinics and physician organizations throughout California, Texas, and New Mexico. Collectively, the 24,000 dedicated employees and 6,000 outstanding physicians deliver care to more than 137,000 inpatients and 3.6 million outpatients each year. Throughout its comprehensive regions of care, SJH strives to provide perfect care while building the healthiest communities and ensuring every encounter is sacred. These extraordinary efforts have been recognized locally and nationally, including distinctions in US News & World Report and Magnet recognition. Guided by the traditions of its founders, the Sisters of St. Joseph of Orange, SJH is committed to maintaining a continuum of care that matches the diverse needs of its communities. SJH’s Southern California hospitals include Mission Hospital (Mission Viejo and Laguna Beach); St. Mary Medical Center (Apple Valley); St. Joseph Hospital (Orange) and St. Jude Medical Center (Fullerton). For more information, visit www.stjoe.org .