Hospital Boards OK Shared Management
St. Joseph Hospital took over financial management Tuesday of struggling Children’s Hospital of Orange County.
The management plan, which allows CHOC to remain an independent institution with its own board and management, was approved by both institutions’ boards.
The two organizations announced plans for the business arrangement in June.
Like many children’s hospitals, CHOC has been losing money in recent years as it was slow to adjust to massive changes in health care, such as the transfer of local children from MediCal into managed care.
The two institutions have had strong historical ties. CHOC, which opened in 1964, initially operated out of St. Joseph’s south wing.
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