Parties Form New JV, Abrazo Acquires 50 Percent Stake in Arizona Care Network
Phoenix (January 29, 2014) - Dignity Health in Arizona and Abrazo Health, two of the state’s largest health care organizations, further solidified a commitment to grow their accountable care footprint in Arizona, with Abrazo Health signing an agreement enabling investment in the funding and expansion of Arizona Care Network. Under the terms of the agreement, Abrazo Health, which is owned by Tenet Healthcare Corporation, will take a 50 percent ownership stake in the Arizona Care Network.
As part of the transaction, the two organizations are entering into a joint venture that will continue to grow the Arizona Care Network and allow Dignity Health and Abrazo Health to more effectively pursue population health management arrangements to improve efficiency and patients’ outcomes and experience.
“This new joint venture will allow Dignity Health and Abrazo Health to be more competitive in the marketplace by establishing innovative, value-based care delivery contract arrangements with payers and employers focused on enhanced care coordination and improving the health status of our communities,” said Ken Howell, CEO of Tenet Healthcare’s Phoenix Market. “Tenet Healthcare has a history of successful ACO collaborations and we are pleased to continue advancing innovation in value based relationships care coordination through our Integrated Care Networks.”
“By collaborating with Abrazo Health, we have chosen to participate in a model of integration, which ultimately benefits all of the patients we serve,” said Linda Hunt, President and CEO of Dignity Health in Arizona. “Utilizing both health systems’ deep relationships throughout Arizona, we are creating an integrated health care delivery network that connects patients with physicians, care teams, and advocacy services. The network’s evidence-based clinical practices and quality standards are designed to drive the best possible outcomes for our patients.”
About Arizona Care Network
Arizona Care Network is a physician-led, physician-governed accountable care organization and clinically integrated network that fosters collaboration and improved quality through shared resources, advanced technology and clinical best practices that align with emerging models of care delivery. This collaborative network aims to reduce costs, improve outcomes and provide a superior patient experience. Composed of more than 2,000 physicians, nine acute care hospitals as well as more than half of all recognized Patient Centered Medical Home models in Arizona, Arizona Care Network is helping shape the future of health care through its progressive models of care delivery. Arizona Care Network was formed through collaboration between Dignity Health and Abrazo Health, two market-leading organizations that have established relationships with strategic partners and premier health care providers throughout the state. For more information, see www.azcarenetwork.org.
About Dignity Health in Arizona
Dignity Health in Arizona includes three outstanding hospitals – St. Joseph’s Hospital and Medical Center, which includes Barrow Neurological Institute, Chandler Regional Medical Center and Mercy Gilbert Medical Center. St. Joseph’s Westgate will be a fourth facility in Glendale, opening spring 2014. From this foundation, Dignity Health in Arizona has expanded into a comprehensive health care system, which includes imaging centers, clinics, specialty hospitals, urgent cares, an insurance provider and other clinical partnerships. The Dignity Health Medical Group employees more than 250 physicians, who cover a wide range of specialties. Dignity Health, Arizona Service Area, is part of Dignity Health, one of the nation’s five largest health care systems.
About Abrazo Health
As the second largest health care delivery system in Arizona, Abrazo Health is committed to providing excellent medical care to the residents of Maricopa County. The Abrazo system includes six acute care hospitals: Arrowhead Hospital, Maryvale Hospital, Paradise Valley Hospital, Phoenix Baptist Hospital, West Valley Hospital and Arizona Heart Hospital; with a combined 1,029 licensed beds. In addition, the system consists of two health plans; School-Based Health Centers; and Abrazo Medical Group with 17 Valley locations. Abrazo Health is owned by Tenet Healthcare Corporation, a leading health care services company that through its subsidiaries operates 77 hospitals, 183 outpatient centers and Conifer Health Solutions, a leader in business process solutions for health care providers serving more than 700 hospital and other clients nationwide.