New affiliation serves as a shot in the arm to economic growth
Some marriages are for love, some are for strategy. But whatever the case for an individual, the marriage of Southwest Washington Health System of Vancouver and PeaceHealth of Bellevue is a little of both.
Earlier this month, the two organizations (a combined eight hospitals and some 15,000 employees) announced that their long-anticipated union would solidify with the New Year on January 1st. Their married name: PeaceHealth (Southwest Washington Medical Center will become PeaceHealth Southwest Medical Center). Government agencies still need to approve the deal and are expected to by year’s end.
The merger, dubbed an “affiliation” by the hospitals, brings some 500 service center jobs to Clark County. No location has been chosen for the center, which is expected to open by mid-2012. The jobs will be mostly back-office positions in information technology (IT), accounting and patient financial services.
“That’s a big win for this community,” said Kenneth Cole, chief communications officer for Southwest Washington Health System, who noted that the non-clinical jobs (jobs outside of primary care), pay family wages.
Along with the merger, the IT jobs are poised to help buoy the hospitals as they prepare for healthcare reform. Reforms potentially bring more healthcare coverage to Americans, but it also brings questions about provider reimbursements and IT mandates.
“Spreading those [IT] costs across the system is a huge benefit,” Cole said. “We know that we have to meet those federal requirements to push forward with electronic health records. If you can share those costs and get access to a lower borrow rate, it will help save resources. With so many [healthcare reform] unknowns, bigger is better and offers more stability.”
Southwest’s physicians and nurses are expected to join PeaceHealth within two years, pending contract negotiations. Cole said he didn’t expect any changes to current healthcare provider staffing levels – including contract physicians, who help staff Southwest’s emergency rooms and along side hospital physicians, monitor admitted patients and order tests.
Cole said the merger is poised to expand locally-provided medical services.
“Historically, there are a certain percentage of patients that leave our community for care,” he said. “Growing will mean we can service patients in the community, rather than send them to Oregon hospitals.”
A spokesperson at Legacy Salmon Creek Medical Center had well wishes for the newly matched.
“Legacy Health enjoys a good working relationship with Southwest Washington Medical Center and we wish them well as they advance their merger with PeaceHealth,” said Jonathan Avery, chief administrative officer at Salmon Creek. “We are pleased to see the merger going well and pleased that PeaceHealth will bring even more jobs into the community – a bright spot in this economy.”
