Hospital administrations consider merger

The Catholic organization overseeing Sacred Heart Medical Center may merge with an associated hospital system in Seattle.

The boards of Providence Services, of Spokane, and Providence Health System, of Seattle, will meet in December and review a proposal designed to save on administrative costs and help the two big systems more closely cooperate.

No decisions have been made, said Sharon Fairchild, of the Spokane organization.

Both systems are part of the Sisters of Providence, which operates in Washington, Montana, Oregon, Alaska and California.

If the nonprofit merger happens, Sacred Heart would remain the single largest hospital in the organization, Fairchild said. Patients would notice no changes, nor would employees see many differences, Fairchild said.

The two systems have strong market positions in the communities where they operate.

Merged, the two would have 27 hospitals along with clinics, health plans and a college. Such an organization would have about 45,000 employees.

Fairchild said hospitals are pressured by higher costs and responsibilities. The merger, she said, would be a way for the two organizations to share resources.

Planning teams will present merger information to the boards, which will then make the final decisions.