ECG was selected by Providence Health Care to facilitate the integration of the two group practices into a single entity and then manage the acquisition and consolidation of the groups to form a new heart and vascular hospital.
Providence Health Care, a Spokane-based, regional system subsidiary of Providence Health & Services in Renton, was seeking to align more closely with referring cardiology practices as a means for improving financial, revenue cycle, operations, and physician performance and to move toward integration and development of heart and vascular services. Concurrently, two local cardiology groups were pursuing a merger and were seeking a partner to develop a comprehensive heart institute using the Minneapolis Heart Institute foundation model.
ECG was selected by Providence Health Care to facilitate the integration of the two group practices, composed of 41 heart and vascular surgeons, into a single entity and then manage the acquisition and consolidation of the groups to form a new heart and vascular institute. In addition to coordinating the initial integration tasks and completing long-range financial planning in support of the transaction, we provided technical aid to the internal project steering committee and nine specialized work groups.
ECG’s scope of work included completing the transaction negotiations and preparing the definitive agreements. We also monitored consolidation of the two practices and their outlying sites and assisted with a new organizational structure and provider-based billing system. Financial analysis of the prospective performance of the proposed heart and vascular hospital was also conducted.
As the project progressed, the terms of the transaction were challenged during the regulatory review process, resulting in an 8-month delay to the integration process and extensive reassessment and eventual rescaling of the transaction. ECG partnered with Providence Health Care and the group practices throughout the entire process and provided ongoing monitoring of the post-transaction integration activities.
With closure of the transaction and extensive integration planning completed, Providence Spokane Heart Institute has expanded to include hospital-based functions and satellite offices in three regional locations.
Since the transaction, the institute has achieved many notable milestones, including:
- Achieving the state of Washington’s lowest rate of hospital readmissions among heart failure patients
- Achieving designation as a U.S. News & World Report Best Regional Hospital in Cardiology & Heart Surgery
- Ranking in the nation’s top 10% of hospitals by Premier, Inc., for treating patients for heart attacks and congestive heart failure and in the top 20% for coronary artery bypass grafting
- Being designated as one of only three cardiac transplant programs in the nation to be recognized for excellence by Healthgrades
- Performing the most cardiac procedures of any program in the Northwest according to Healthgrades