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Modern Healthcare - - Regional News -

PHOENIX—

St. Joseph’s Hospi­tal and Med­i­cal Cen­ter in Phoenix and Phoenix Chil­dren’s Hospi­tal said they are ne­go­ti­at­ing an al­liance. The deal would in­clude trans­fer­ring most of St. Joseph’s pe­di­atric ser­vices to 344-bed Phoenix Chil­dren’s and unit­ing much of the pe­di­atric med­i­cal staff by mid-2011. The trans­fer would co­in­cide with the open­ing of Phoenix Chil­dren’s new 11-story hospi­tal tower. Un­der a non­bind­ing mem­o­ran­dum of un­der­stand­ing, 738-bed St. Joseph’s, a Catholic Health­care West fa­cil­ity, would re­tain its neona­tal in­ten­sive-care unit and con­tinue to serve pe­di­atric pa­tients in its trauma cen­ter. St. Joseph’s would be­come a mi­nor­ity mem­ber of Phoenix Chil­dren’s with lim­ited rep­re­sen­ta­tion on the board of direc­tors. “This land­mark al­liance takes ad­van­tage of our com­bined ex­per­tise on be­half of the chil­dren and fam­i­lies we serve and will con­firm Phoenix Chil­dren’s as one of the na­tion’s top-tier chil­dren’s hos­pi­tals in the na­tion,” said Robert Meyer, pres­i­dent and CEO for Phoenix Chil­dren’s, in a writ­ten state­ment.

OAK­LAND, Calif.—

Chil­dren’s Hospi­tal and Re­search Cen­ter is un­der­go­ing a re­struc­tur­ing af­ter sus­tain­ing more than $80 mil­lion in losses over the past four years. Some 71% of pa­tients are cov­ered by Med­i­caid, up from about 60% in 2008, and Cal­i­for­nia has one of the low­est Med­i­caid re­im­burse­ment rates in the coun­try. Med­i­caid re­im­burse­ment ranges from 30 cents to 10 cents for ev­ery dol­lar of care pro­vided by the hospi­tal, of­fi­cials said. Last year, the 190-bed not-for-profit hospi­tal lost $26 mil­lion. In re­sponse, hospi­tal of­fi­cials are de­vel­op­ing a three-year plan to be com­pleted soon. Un­der con­sid­er­a­tion are work­force re­duc­tions, ser­vice stream­lin­ing, rene­go­ti­at­ing con­tracts and part­ner­ing with com­mu­nity clin­ics to de­liver some care. “The pe­di­atric health­care re­im­burse­ment

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