Hospitals

Providence St. Joseph Health wraps up merger, pledges $100M for mental health

The newly formed Providence St. Joseph Health comprises 50 hospitals, 829 clinics and affiliated social services in seven states, making it the third-largest nonprofit healthcare organization in the country.

By Neil Versel on July 06, 2016
Dr. Rod Hochman

Dr. Rod Hochman

Renton, Washington-based Providence Health & Services and St. Joseph Health System, of Irvine, California, have officially merged to create Providence St. Joseph Health. The newly formed nonprofit immediately announced a $100 million commitment to improving mental health treatment.

Providence St. Joseph Health comprises 50 hospitals, 829 clinics and affiliated social services in Alaska, California, Montana, New Mexico, Oregon, Texas and Washington. It also includes a health plan in Oregon, the University of Great Falls in Montana and Providence High School in Burbank, California, according to President and CEO Dr. Rod Hochman.

All told, the merged entity employs about 106,000 people, Hochman said. It’s the third-largest nonprofit healthcare organization in the nation, he added.

Most services won’t change much in the short term. In fact, the organization said it would retain some of its historical brands, including Covenant Health in Texas, Hoag Memorial Hospital Presbyterian in California and Swedish Health Services in Washington state.

But Providence St. Joseph made a splash on its first day, announcing the $100 million commitment to mental health by forming the Institute for Mental Health and Wellness. The organization has hired Maureen Bisognano, retired president and CEO of the Institute for Healthcare Improvement, will chair an advisory panel charged with developing a blueprint for the institute and for providing better mental healthcare nationwide.

“Improving mental healthcare takes leadership on all levels, as well as a major commitment of resources,” Bisognano said in a statement from Providence St. Joseph. “I am looking forward to leading a national conversation around mental health and am excited about what we can achieve together.”

Of that $100 million, at least $30 million will be spent in California. California Attorney General officially made that investment a condition for approving the merger, though Hochman said that the focus on mental health was his organization’s idea.

“We were the ones who recommended that,” explained Hochman, who had been president and CEO at Providence. “The AG asked us what we would do differently” following the merger. The response was to focus on mental health.

Hochman will leave many of the specifics about the Institute for Mental Health and Wellness up to Bisognano’s committee, but he said that he wants to home in on five areas:

  • Depression and related disorders;
  • Mental illness in children;
  • Addiction;
  • Major psychotic disorders; and
  • Destigmatizing mental health.

Photo: Providence St. Joseph Health