Press Release

June 30, 2010
For Immediate Release
Contact: Gregg Davidson, Chief Executive Officer, Skagit Valley Hospital, 360-814-2130

                   
Skagit Regional Clinics makes debut on July 1

MOUNT VERNON, WA – The merger of Skagit Valley Hospital and Skagit Valley Medical Center is official on July 1, marking the debut of Skagit Regional Clinics.

The integration of the two organizations is designed to improve access to quality, evidence-based health care services and enhance recruitment and retention of providers to the region including Skagit, Island, San Juan and north Snohomish counties.

The acquisition and launch of Skagit Regional Clinics is the start of a new era for Skagit Valley Hospital as an integrated health care system, said Chief Executive Officer Gregg Davidson.

“This is a new day and an exciting time for Skagit Valley Hospital, Skagit Regional Clinics and, most importantly, for the people of the region who deserve access to the highest quality health care services,” Davidson said.

SVMC’s locations in Mount Vernon, Stanwood, Sedro-Woolley, Arlington, Anacortes, Oak Harbor along with the hospital’s Camano Community Health Clinic will all bear the Skagit Regional Clinics name. The merger means more than 100 providers and 300 staff of the clinics will join the hospital’s ranks, boosting the hospital’s total employment to more than 1,800.

The integration and name change to Skagit Regional Clinics will have no impact on patient-provider relationships at each location.

“The providers and locations all remain the same,” Davidson said. “Our providers will continue to provide excellent care, based on the unique needs of each patient.”

The two organizations have been working on a plan for the past 18 months and gained formal approval from the hospital’s Board of Commissioners and the clinic system’s shareholders in March.

The hospital will purchase some assets and equipment and lease remaining facilities from SVMC this year in a two-year merger plan. In July 2012, the hospital will acquire the membership units of SVMC.

The hospital, which continues to be in a strong financial position, will pay for the transaction with proceeds from cash reserves and revenue bonds. The purchase price to be paid over the next two years totals $17.4 million.

The merger brings financial benefits including higher reimbursement from government health care programs, improved overall reimbursement for some services and lower costs.