SCL plans to sell Saint John's to Providence Health & Services

June 15, 2013

Denver-based SCL Health System says it has entered into exclusive negotiations to allow Providence Health & Services, Southern California to buy Saint John's Health Center in Santa Monica, Calif. The SCL system made the announcement May 17 in a statement.

Saint John's operates 266 licensed and 234 staffed beds and has core service lines of cardiac care, oncology, orthopedics and women's health. The Catholic nonprofit is also home to the John Wayne Cancer Institute. Saint John's began a $537 million project on its existing site in 1999 for a replacement facility that meets California's seismic requirements. The new facility is scheduled for completion this year. Founded in 1942 by the Sisters of Charity of Leavenworth, Saint John's serves Santa Monica, West Los Angeles and beyond.

The Saint John's Health Center Board, the SCL Health System and Leaven Ministries, the canonical sponsor of SCL Health System, began reviewing proposals earlier this year for realignment options to advance Saint John's position among Southern California health networks. Michael Slubowski, president and chief executive of SCL Health System said, "With the most extensive network of Catholic hospitals and physicians in the region, Providence is well positioned to succeed in this era of accountable care through population health management and serving new enrollees who will have access to health care as part of the Affordable Care Act. Both are vital to the continuation of the ministry at Saint John's."

Providence has an "extensive facility network with five hospitals and 40 clinics in the Los Angeles area," according to a statement from SCL Health System. The system said it carefully considered Providence's mission, vision and values and found its culture was one where "St. John's and its associates and clinicians can thrive."

The Los Angeles Times has reported that St. John's also received a bid from a group that included UCLA Health System, Ascension Health Alliance and Dignity Health. The newspaper said billionaire Patrick Soon-Shiong submitted a separate proposal where the Chan Soon-Shiong Institute for Advanced Health, a nonprofit company, would have acquired the hospital and would have continued to follow the Ethical and Religious Directives for Catholic Health Care Services.

The sale is subject to due diligence, completion of a definitive agreement and standard regulatory approvals. The transfer of canonical sponsorship to Providence Ministries is subject to approval by the Archbishop of Los Angeles and the Holy See.


Copyright © 2013 by the Catholic Health Association of the United States
For reprint permission, contact Betty Crosby or call (314) 253-3477.

Copyright © 2013 by the Catholic Health Association of the United States

For reprint permission, contact Betty Crosby or call (314) 253-3490.