For years, the Hillsboro-based hospital thwarted off aligning with a larger healthcare system such as Providence Health & Services, preferring to remain independent.
But, now, after losing between $3-5 million last year because of a decline in patient census, Tuality has brokered a deal with OHSU, which intends to divert patients to the Hillsboro facility and alleviate its overcrowding beds, confidential sources tell The Lund Report. That extra bed capacity was an important factor in the OHSU affiliation. Under the agreement, Tuality Hillsboro has 167 beds, while its Forest Grove counterpart has 48. Had Tuality not aligned with OHSU, it wasn’t in financial jeopardy, and has sufficient reserves.
“We are near to a final agreement with Tuality,” Beth Heinrich, associate vice president of strategic communication at OHSU. Under the agreement, OHSU will manage Tuality’s clinical operations
Last fall, OHSU inked a deal with Salem Health and created OHSU Partners, headed by Peter Rapp, who earlier told The Lund Report, “We’re setting the stage for being able to drive healthcare transformation.”
That partnership intends to align itself with physicians across the state to improve outcomes and, at the same time, strengthen the role of its two foremost collaborators that are ultimately responsible for its success -- Salem Health and OHSU. This nonprofit endeavor is being financed by OHSU and Salem Health whose boards will have oversight responsibility.
Although there’s no outward sign that other hospitals are coming on board anytime soon, OHSU does have very strong affiliations around the state, evidenced in recent articles that appeared in The Lund Report. For example, its residents and interns rotate through Blue Mountain Hospital in John Day, while Columbia Memorial has teamed up with OHSU to build an 18,000 square foot cancer center on its Astoria campus, and Sky Lakes is establishing a new rural campus in Klamath Falls with OHSU's cooperation.
Gruber Key to Success
Norm Gruber, who stepped down as CEO of Salem Health, has become president of OHSU Partners and assumed responsibility for the transition to an integrated system. Earlier, Gruber helped create the Population Health Alliance, an endeavor between Moda Health, OHSU and other hospitals throughout the state to expand the reach of its hospital members by managing and coordinating patient care.
Aaron Crane who had been chief financial officer of Salem Health, was tapped to lead the Alliance.
Tuality and Providence
Several years ago, Tuality attempted to align with Providence Health & Services, entering discussions to integrate specific clinical and administrative services and improve community health access. More specifically, its leadership – under the direction of then CEO Richard Stenson – was interested in expanding primary care, developing a package of maternity care services, using telemedicine to deliver care remotely and improving community health access.
At that time, Stenson denied Tuality was interested in selling the hospital or transferring control or governance to Providence.
In the end, those discussions fell through, according to Manny Berman, Tuality’s current CEO.
Once the affiliation with OHSU Partners has been completed this fall, Berman intends to remain at the helm. “This is terrific for western Washington County,” he told The Lund Report earlier. “This is about clinical alignment, care coordination and integrating care. We look forward to a bright future in collaboration with OHSU – an exceptional healthcare organization focused on improving the health of our communities here at home.”
Diane can be reached at [email protected].
