Irvine, Calif.-based St. Joseph Health will continue to operate Petaluma (Calif.) Valley Hospital until January 2020, Petaluma Health Care District officials confirmed May 16, according to the North Bay Business Journal.
Here are four things to know about the negotiations.
1. St. Joseph Health announced its intent to form a joint operating company with Roseville, Calif.-based Adventist Health to manage their Northern California operations in April. Once the deal is finalized, the joint operating company may take over operating negotiations for Petaluma Valley Hospital.
2. District officials said they have "reengaged with St. Joseph because of the new company," adding, "it will probably be the new company that will run the hospital," the report states.
3. St. Joseph Health has operated the 80-bed acute care hospital since 1997. However, the health system's 20-year lease expired in 2017, and talks to extend the lease ended as a result of financial terms and women's reproductive health issues, according to the report.
4. The district began seeking other potential hospital operators and was negotiating an agreement with El Segundo, Calif.-based Paladin Healthcare. However, district officials ended talks with Paladin after St. Joseph agreed to continue to run the hospital until January 2020.