The boards of directors of Scottsdale Healthcare and John C. Lincoln Health Network have agreed to a definitive agreement to form a system-wide affiliation to improve the health of the communities served by the respective organizations. The agreement creates a new non-profit corporate entity, Scottsdale Lincoln Health Network, which will oversee the affiliated entities.
Tom Sadvary will be chief executive officer and Rhonda Forsyth will be president of Scottsdale Lincoln Health Network. Sadvary is currently president and CEO of Scottsdale Healthcare and Forsyth is currently president and CEO of John C. Lincoln Health Network. The affiliation agreement is subject to customary regulatory review processes and is expected to close by Oct. 1; a Letter of Intent to affiliate was approved by both organizations in April.
The new Scottsdale Lincoln Health Network encompasses five acute care hospitals with approximately 10,500 employees, 3,700 affiliated physicians and 3,100 volunteers, 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.
Affiliation does not include the combination of assets and thus is not considered a merger. However management of the affiliated assets will now be vested in a board made up of Scottsdale Healthcare and John C. Lincoln directors.
“Our shared vision is to become a fully integrated, locally controlled, world-class health system that works together to improve our community’s health while honoring the legacies of our respective organizations,” said Sadvary. “This system-wide affiliation is an excellent opportunity to provide accessible, high quality and cost effective care across the continuum of health services.”
John C. Lincoln Health Network and Scottsdale Healthcare are both financially strong and deliver high quality care. Both are non-profit, locally based health systems with long histories of caring for their communities.
“The affiliation will create more convenient access to acute and preventive care for the communities we serve. Both organizations share a commitment to Magnet status for the hospitals, a national recognition of promoting and providing the highest standards of excellence in patient care, and there is a meaningful commitment to community service historically and going forward,” noted Forsyth.
A single board of directors with balanced representation from Scottsdale Healthcare and John C. Lincoln Health Network will have oversight for Scottsdale Lincoln Health Network, Scottsdale Healthcare and John C. Lincoln Health Network.
Chairing the new Scottsdale Lincoln Health Network board of directors will be Steve Wheeler. Vice chair is Frank Pugh. Wheeler is current chair of the Scottsdale Healthcare board and Pugh is current chair of the John C. Lincoln Health Network board.
Scottsdale Lincoln Health Network governance will be focused on achieving their shared vision which includes:
Integration planning for the new Scottsdale Lincoln Health Network will continue during the next few months to develop an outline of key priorities, noted Sadvary.
Sadvary’s responsibilities will focus on board development, strategic direction, medical education, medical research, personalized medicine, community impact, development and management of the business operations of the new affiliated organization; and development and expansion of philanthropic support of the affiliated health network.
Forsyth’s responsibilities will focus on healthcare operations, ambulatory and physician networks, partnership with physicians, continued professional development through our mutual commitment to Magnet, and the further development of the accountable care initiatives underway in each organization.
Wheeler and Pugh noted that the board and senior leadership of the affiliated organization will take a thoughtful and methodical approach to integration planning.
“We are creating the healthcare organization of the future and that will take some time. Both Scottsdale Healthcare and John C. Lincoln Health Network are financially healthy and deliver great quality of care,” said Wheeler. “Our priority is to identify the values we share so leadership can continue to make our organization a great place to work and practice, and enhance access across the continuum of care.”
“Together we are well positioned to meet the new demands of national healthcare reform. Each organization has a strong reputation for quality and a history of collaboration,” added Pugh. “System-wide affiliation will allow a comprehensive array of services through leveraging resources, strengthening quality and enhancing clinical service capabilities.”