Two Providence Companies Join
(Seattle, Spokane, Wash.) – Providence Services and Providence Health System will create a new integrated system to manage the health care, senior and community services, housing, and education services of the two systems effective January 1, 2006. The Boards’ recommendation was approved by the Provincial Council of the Sisters of Providence, who sponsor both organizations’ operations in dozens of communities in Alaska, Washington, Montana, Oregon and California.
“The creation of this Providence ministry is, in fact, the reuniting of our two Providence ministries under common leadership with a shared vision for the future,” said Sister Margaret Botch, Provincial Superior, Sisters of Providence.
The new integrated system, which has chosen Providence Health & Services as an interim name for the corporation, will include 27 hospitals, more than 35 non-acute facilities, physician clinics, a health plan, a liberal arts university, 45,000 employees and numerous other health, housing and education services. The corporate headquarters for Providence Health & Services will be in Seattle.
E. Kay Stepp, currently Providence Health System Board Chair, was selected by a joint nominating committee of the two boards to be Chair of Providence Health & Services. Stepp is the former President and Chief Operating Officer of Portland General Electric, a public utility in Portland, Oregon, where she also held a number of executive positions during her 14-year career. She serves on the boards of StanCorp Financial Group, Planar Systems, Inc., and Franklin Covey Company.
“This ministry will enable us to capitalize on the assets of both organizations and maintain the high quality we’re both known for in this challenging health care environment,” said Stepp.
Providence Health & Services will be led by the following executives:
- John Koster, MD, currently Providence Health System President and CEO, has been appointed President and CEO.
- Rich Umbdenstock, currently Providence Services President and CEO, has been appointed Executive Vice President, and will be responsible for governance, advocacy, and external affairs. He will also become Chair of the American Hospital Association in 2006.
- Jack Mudd, currently Providence Services Senior Vice President, has been appointed Senior Vice President, Mission Leadership.
- Jan Jones, currently Providence Health System Senior Vice President and Chief Administrative Officer, has been appointed Senior Vice President and Chief Administrative Officer.
- Mike Butler, currently Providence Health System Senior Vice President and Chief Financial Officer, has been appointed Senior Vice President and Chief Financial Officer.
- Greg Van Pelt, currently Providence Health System Senior Vice President and Chief Regional Operations Officer has been appointed Senior Vice President and Chief Regional Operations Officer.
John Fletcher, currently Chief Executive of the Washington State Region of Providence Health System, has been appointed Chief Executive for the Washington/Montana region, which will include all of Providence Services’ operations in Eastern Washington and Western Montana and Providence Health System’s operations in Western Washington. Offices for the Washington/Montana operations will be located in Renton and Spokane.
“This is a unique opportunity for two strong, healthy organizations who share a common mission, to integrate our operations. We face a challenging economic environment and have a moral obligation to be wise stewards of limited resources,” said Koster.
“Our structure will enable people to stay focused on their local communities, with the added benefit of sharing expertise and best practices across the system,” said Umbdenstock.
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