Two Hospital Merger Deals Collapse

John Commins, for HealthLeaders Media , April 15, 2013

"Bringing together two large health systems is a very complex and challenging process," John DiCola, CHI's senior vice president of strategy and business development said in an interview.

"It was also a very innovative model," DiCola says. "Though it was a 50-50 joint venture, the new operation would consist of 100% of PeaceHealth's organization and CHI would contribute, if you will, 20% of its organization – the hospitals in Washington and Oregon. We just could not integrate this in the way felt would provide the desired benefits and serve the best interests of both organization and our communities.

"We spend a lot of time trying to work this out. That's the purpose of the due diligence process. CHI and PeaceHealth had good discussions. We agreed on a lot of issues, but all of the pieces have to fit, not just a few of them."

"We will keep the door open, keep the dialogue going; we had good discussions and we maintain a good relationship and have a lot of respect for each other."

Peter Adler, chief strategy officer at PeaceHealth, declined to provide specifics on where the breakdowns occurred in the negotiations, but he said the two health systems ended the talks amicably and by mutual agreement.

John Commins is a senior editor with HealthLeaders Media.

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