Transition Update: St. Joseph Medical Group & Madrona Medical Group
    

May 16, 2008

The acquisition of most of the assets of Madrona Medical Group (MMG) is expected to be finalized by June 30. On July 1 MMG and St. Joseph Medical Group (SJMG) will combine to become a larger, integrated group called PeaceHealth Medical Group. This group will be integrated with other PeaceHealth Medical Groups across PeaceHealth’s six regions. The integration of PeaceHealth Medical Group in our region and St Joseph Hospital also creates the foundation of an integrated delivery system of acute and primary healthcare in Whatcom County. Regular PeaceHealth Medical Group Transition Updates will be included in The Report, which now is being distributed to MMG staff.

To: PeaceHealth Whatcom Region Employees, Community Members and All Interested Parties

From: Erick Laine, M.D., CEO, Madrona Medical Group, Incoming Whatcom Regional Vice President, PeaceHealth Medical Group
The formation of PeaceHealth Medical Group is an important step in deepening PeaceHealth’s ministry and commitment to provide safe, evidence-based, compassionate care every time, every touch to patients and their loved ones in each of the communities it serves. By integrating professional service lines in the office-based setting and orchestrating care between hospital and ambulatory care environments, PeaceHealth is able to advance this mission and vision.

The integration of MMG and SJMG is expected to improve healthcare access to patients by reducing current limitations on accepting Medicare and Medicaid patients—while continuing to recruit providers and other caregivers in areas of community need. Improvements in clinical quality are expected to come from taking a more consistent, evidence-based approach to clinical outcomes in acute and chronic care protocols. Better healthcare value is expected to come from reducing the variation around demonstrated best practices. The culture of healing and compassionate care will also be further extended by engaging physicians and other caregivers in this important collaboration.

If access, quality, the patient experience and value are to be PHMG’s principal deliverables, the way we will succeed is by creating a culture that nurtures caregivers (providers and staff). Creating a working environment where people are inspired will allow PHMG to recruit and retain the highest caliber of physicians and staff.

The relationship PHMG will have with other physicians and provider groups in the community is equally important. This is the collaboration necessary to truly innovate healthcare in Whatcom County and across PeaceHealth. And it is key to living our value of collaboration.

Better healthcare access, quality, patient satisfaction and value—combined with healthy working relationships within and between organizations—is easier said than done. Acquisitions, mergers and transitions are stressful for everyone. This is going to take a lot of work, by lots of people, over the course of weeks, months and years. Fortunately the members of SJMG, MMG, SJH, PeaceHealth and the medical community in Whatcom County have already distinguished themselves through a history of collaboration and innovation. Taking the best of that history into the future creates the capacity to make a compelling vision real.

Transition structure -- The integration of the two medical groups into a regional integrated delivery system with the hospital is being led by the Executive Integration Oversight Team, headed by Nancy Steiger, PeaceHealth Whatcom Region CEO/Chief Mission Officer. Erick Laine, current MMG CEO and incoming Regional Vice President for PeaceHealth Medical Group in the Whatcom Region, is a member of this team. Others include members of the PHWR Executive Team and selected PeaceHealth System representatives.

A Transitional Oversight Team, involving directors and managers from PHWR, SJMG and MMG will be responsible for creating essential structural interfaces necessary for combined operations by the beginning of July.

Sub-teams are hard at work to transition hundreds of issues by July 1, including assumption of contracts and leases, hiring of physicians and staff, re-credentialing of MMG physicians for payers, creating leadership and management structures, creating IT/IS interfaces, creating reporting formats, preserving critical business functions, and putting in place all the other platforms necessary to provide healthcare as a new organization. A significant effort is underway to ensure that the best of both cultures of each organization is kept, in order to inform the new culture that will occur as a result of this integration.

HR transition update:

  • Of the 402 current Madrona employees, nearly all have completed the employment process with PeaceHealth, which includes standard background checks. Occupational health requirements are in process.
  • Offer letters will be sent to applicants this month and there will be a benefits fair for benefits enrollment.
  • New-employee orientation is being scheduled.
  • Planning is underway for how current MMG employees will be placed within the PeaceHealth organization.

Naming decisions:

  • All PeaceHealth-owned clinics in the Whatcom Region will assume the name PeaceHealth Medical Group on July 1. The names St. Joseph Medical Group and Madrona Medical Group will no longer be used. Signage and stationery will be changed by July 1.
  • The current main MMG location (main building) at 4545 Cordata Parkway will be referred to as PeaceHealth Medical Group’s Cordata building.
  • The current MMG Specialty Branch location at 4465 Cordata Parkway will be referred to as PeaceHealth Medical Group’s Cordata South building.
  • The current MMG Central Business Office location at 454 Stewart Road will be referred to as PeaceHealth Medical Group’s Patient Financial Services building.