Scottsdale Healthcare and John C. Lincoln Health Network announce intent to form a system-wide affiliation

SCOTTSDALE & PHOENIX (April 18, 2013) – Scottsdale Healthcare and John C. Lincoln Health Network have endorsed a letter of intent to form a system-wide affiliation to better meet the healthcare needs and thus improve the health of the communities they serve.

The nonbinding agreement between the two non-profit organizations allows both to pursue an exclusive negotiation during a due diligence period in order to create a combined health system. Discussions are anticipated to be complete by July 31.

The new non-profit system, which would be called Scottsdale Lincoln Health Network, would include five hospitals with approximately 10,500 employees, 3,700 affiliated physicians and 3,100 volunteers. Scottsdale Lincoln Health Network would also include an extensive primary care physician network, urgent care centers, clinical research, medical education, an inpatient rehabilitation hospital, an Accountable Care Organization, two foundations and extensive community services.

Both John C. Lincoln and Scottsdale Healthcare have a strong reputation and history of providing high quality care for the residents of Phoenix and greater Scottsdale. The non-profit health systems share similar visions and cultures, and both are Magnet organizations, a national recognition of providing the highest standards of patient care.

“This affiliation will provide resources to further develop the current high quality care in the hospitals and community healthcare facilities, enhance our geographic presence and honor the legacy of each organization. Our shared vision is to become a fully integrated, locally controlled, world-class health system,” said Scottsdale Healthcare President & CEO Tom Sadvary.

John C. Lincoln Health Network and Scottsdale Healthcare are financially strong, operationally successful and committed to meeting local health needs. Both organizations have been developing integrated delivery systems to expand services beyond acute care.

“Each of our organizations is known for quality and collaboration with community partners to promote the well-being of the communities we serve. The combined Scottsdale Lincoln Health Network will allow us to provide more cost effective healthcare and to thrive during this period of rapid change as a result of national and local health reform as we continue to develop a full continuum of services beyond acute care,” added John C. Lincoln Health Network President & CEO Rhonda Forsyth.

Upon completion of the affiliation agreement, the Scottsdale Lincoln Health Network governance will be focused on their shared vision which includes:

• More convenient access to acute and preventive care.
• Increased coordination of medical care.
• An expanded network of high quality primary care and specialty physicians.
• Creation of a single electronic health record that can be accessed at all levels of care throughout the affiliated health network.
• Improved patient outcomes through shared best practices.

“This affiliation will attract top medical talent by providing opportunities for physicians and other providers to lead the transformation of care delivery, and will enhance our leadership role in medical education and clinical research,” said Scottsdale Healthcare Board Chair Steven Wheeler. “Together we can provide a more comprehensive array of services by applying our combined resources to strengthen our clinical capabilities.”

Forsyth added that maintaining Magnet designation of the system hospitals provides a work environment that attracts top talent.

“As major provisions of the Affordable Care Act continue to take effect, we have the opportunity to shape the future of healthcare in the Valley by cost effectively using our respective resources to enhance our impact in the communities we serve,” said Forsyth.

“We want to maximize our ability to improve the health of our community and create more access to care. A more robust health network with primary care physicians, specialists and partnerships with other healthcare organizations will add capabilities for providing patients with a full continuum of coordinated healthcare services,” said John C. Lincoln Health Network Board Chair Frank Pugh.

About Scottsdale Healthcare

Scottsdale Healthcare is the community-based, non-profit health system that includes three acute care hospitals, a cancer center, surgical specialty hospital and inpatient rehabilitation hospital, a research institute, outpatient surgery centers and a wide array of outpatient and community health services. A leader in medical innovation, talent and technology, Scottsdale Healthcare was founded in 1962 and is based in Scottsdale, Arizona. For more information, visit www.shc.org.

Scottsdale Healthcare: Major Facilities

Scottsdale Healthcare Osborn Medical Center
Scottsdale Healthcare Shea Medical Center
Scottsdale Healthcare Thompson Peak Hospital
Virginia G. Piper Cancer Center at Scottsdale Healthcare
Pediatric ER at Scottsdale Healthcare Shea Medical Center
Scottsdale Healthcare Military Training Center
Scottsdale Healthcare Research Institute
Greenbaum Surgical Specialty Hospital
Global Rehab at Scottsdale Healthcare
Scottsdale Healthcare Community Health Services
Scottsdale Healthcare Foundation

About John C. Lincoln Health Network

John C. Lincoln Health Network is a non-profit organization that includes two hospitals, 30 primary care and specialty physician practices and a spectrum of charitable community service programs serving the people of Phoenix for more than 85 years. For more information, visit www.jcl.com.

John C. Lincoln Health Network: Major Facilities

John C. Lincoln Deer Valley Hospital
John C. Lincoln North Mountain Hospital
John C. Lincoln Accountable Care Organization
John C. Lincoln Breast Health and Research Center
John C. Lincoln Children’s Emergency Center
John C. Lincoln Desert Mission
John C. Lincoln Health Foundation
John C. Lincoln Physician Network