In August, Cascade announced its intent to begin affiliation discussions with PeaceHealth. The recent LOI now confirms that Cascade will become an affiliate of PeaceHealth, pending final review. Both organizations will now conduct due diligence and will work to sign a definitive agreement later next year.
According to the LOI, the public district that currently owns Cascade will lease the land, hospital and other facilities to PeaceHealth for a “nominal” fee. The term of the lease covers 50 years. In return, PeaceHealth will operate Cascade and invest in equipment and other assets to “provide high-quality patient care.” Once a definitive agreement is reached, Cascade will no longer be a publicly owned hospital and instead will be a nonprofit entity within PeaceHealth.
“This is the right direction for our community,” said Clark Jones, CEO of Cascade Hospital, in a news release. “We chose to work with PeaceHealth in part because of their commitment to improving and expanding access to the healthcare services here in northern Snohomish County that are most needed by district residents.”
Skagit Valley Hospital in Mount Vernon, Wash., another public hospital in the area, also announced its intent to affiliate with PeaceHealth. However, Skagit has not yet signed a LOI with PeaceHealth outlining details of the transaction. Skagit, Cascade and one other community hospital, Island Hospital in Anacortes, Wash., have been working together publicly since March to find a suitable affiliation. However, Island Hospital’s board voted not to negotiate with PeaceHealth but will still look for another partner. Other contenders are Virginia Mason Medical Center in Seattle and Providence Health & Services in Renton, Wash.
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