Under a new agreement, SSM Health's integrated delivery network will gain 23 Oklahoma hospitals and affiliates.
After 18 years, HCA and the Oklahoma University Medical Center (OUMC) have agreed to terminate their operating relationship.
University Hospitals Authority and Trust (UHAT), the operating authority that united the state, OUMC, and HCA under a joint operating agreement, will pay HCA $750 million for its interest in the medical center and OUMC Edmond, and the parties will terminate the lease of The Children's Hospital at OUMC in Oklahoma City.
UHAT will partner with St. Louis-based SSM Health, a 20-hospital Catholic health system with operations in Missouri, Illinois, Wisconsin and Oklahoma, in a joint operating agreement. The transaction is expected to be completed in the first half of 2017.
As part of SSM's integrated delivery network, which adds a flagship health system to SSM Health's Oklahoma operations in the deal, UHAT and SSM Health will share financial oversight and governance, and SSM Health will manage the day-to-day operations.
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"This agreement represents the beginning of a new era in Oklahoma healthcare, as it brings outstanding medical education and clinical research together with a faith-based system known for quality and compassionate care," said Bill Thompson, president and CEO of SSM Health.
He says the new deal will meet the changing needs of the community and the healthcare industry and deliver improved, more seamless care to Oklahomans.
SSM Health's goal is to create a comprehensive network of high quality, coordinated services in each community where it has a presence. "In doing so, we are able to improve the patient experience, manage the health of populations, and ultimately lower the total cost of care," said Thompson.
More than 23 hospitals and affiliates in the state of Oklahoma will be part of the new integrated delivery network.
"For almost 20 years, we have collaborated with our partners at UHAT to provide leading quality care and to enhance the range of services available to the greater Oklahoma City community," said Sam Hazen, HCA's chief operating officer, in a press release.
"We believe this relationship has been a successful example of how a public entity and a private entity can partner to improve overall performance. We wish them the best in their future endeavors."
UHAT Chairman Mike Samis also had kind words for the end of the partnership.
"It is clear that the OU Health Science campus has grown and improved its standing during our 18-year relationship with HCA," said Samis.
"I appreciate their efforts and hope that HCA is successful in their future undertakings. As we look forward, I'm pleased that we have a strong platform for the future of healthcare in Oklahoma."