COVID-19 Fall out? Hoag Files Lawsuit to Sever Ties from Providence to Improve Local Services

COVID-19 Fall out Hoag Files Lawsuit to Sever Ties from Providence to Improve Local Services

Newport Beach, California-based Hoag Hospital seeks to sever itself from Seattle-based Providence, a large national not-for-profit Catholic health care system. Hoag desires to directly control its destiny so it can better serve the interests of the local community in Orange County. This comes along with the required litigation: the provider filed in Orange County Superior Court last Friday, May 1 by Hoag founders the Association of Presbyterian Members and the George Hoag Family Foundation seeking to dissolve its affiliation with Providence. Apparently tensions were building—perhaps COVID-19 pushed them over the line?

COVID-19 Magnifies Existing Problems

That the local Orange County hospital was already considering a move only was intensified by the COVID-19 pandemic as the recent crisis illustrated all the more the true constraints the hospital faced being part of the larger provider network, reported Robert Braithwaite, president and CEO of Hoag. He continued, ”Hoag must be able to keep local resources and decision making in Orange County to address all the health needs of community members for years to come.”

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