The California Department of Justice (DOJ) announced its decision denying the proposed partnership between Adventist Health System/West and St. Joseph Health System.
In June 2018, Adventist Health and St. Joseph Health requested the California DOJ to approve their proposal to create a joint operating company called ST Network.
Under the proposal, ST Network will have the authority to manage both health systems’ facilities in Humboldt, Lake, Mendocino, Napa, Solano, and Sonoma Counties.
Adventist Health and St. Joseph Health claimed that the proposed merger will help improve access to quality healthcare across Northern California particularly for those vulnerable and underserved populations.
California DOJ believes proposed merger is not in the public interest
The California DOJ considered the state’s law and regulations as well as the feedback of the public in reviewing the proposal. The department rejected the transaction due to concerns that it is not in the public interest and the possibility that it will increase health care costs. People are also concerned that the proposed merger will likely limit the access and availability of health care services.