ValleyCare to merge with Stanford Hospital & Clinics

Physicians' group to be integrated into Stanford's University Healthcare Alliance

ValleyCare Health System announced Thursday that it has signed a non-binding letter of intent to affiliate with Stanford Hospital & Clinics.

"We are thrilled about the prospect of joining with Stanford's health system," said Scott Gregerson, CEO of ValleyCare Health System. "This affiliation has extraordinary potential for our patients, our staff and our region."

The letter of intent is the culmination of an extensive and thoughtful process that explored ValleyCare's strategic options, and was unanimously approved Wednesday night by ValleyCare's board of directors.

If the transaction is implemented as planned, ValleyCare Health System and its hospitals in Pleasanton and Livermore would become a subsidiary of Stanford Hospital & Clinics.

ValleyCare would retain its medical staff but ValleyCare's physician organization would be integrated with Stanford's University Healthcare Alliance.

"ValleyCare's board members see a great opportunity to combine two high quality organizations to deliver exceptional care to the community and to further ValleyCare's mission with Stanford Hospital & Clinics," said John Sensiba, chairman of ValleyCare's board of directors. "Joining with Stanford's health system brings tremendous health care benefits to the Tri-Valley, while advancing care delivery approaches for the future."

The letter of intent outlines the key terms of an affiliation between ValleyCare Health System and Stanford Hospital & Clinics. Next steps include further due diligence and negotiation of an affiliation agreement to be approved by the boards of both ValleyCare and Stanford Hospital & Clinics. The affiliation is subject to the approval of ValleyCare's corporate membership, and customary regulatory approvals.

"The goal of this affiliation is to support delivery of premier health care services to residents of the Tri-Valley region, while building upon Stanford's preeminent academic health system capabilities," said Amir Dan Rubin, president and CEO of Stanford Hospital & Clinics.

"An affiliation with ValleyCare would leverage Stanford's leading edge and coordinated care delivery approaches, while strongly aligning with Stanford's commitment to care, educate and discover," said Dr. Lloyd Minor, the Carl and Elizabeth Naumann dean of the Stanford School of Medicine.

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Posted by Michael Austin, a resident of Pleasanton Meadows
on May 29, 2014 at 5:19 pm

So, does Stanford hospital and clinics have any association with Palo Alto Medical Foundation?

Posted by Healthcare Affiliate, a resident of Ruby Hill
on May 29, 2014 at 7:45 pm

Palo Alto Medical Foundation MDs do practice at Stanford Hospital.

Posted by Jane Pritchard, a resident of Rosewood
on May 29, 2014 at 7:50 pm

This is excellent news! I would love to have Stanford services in the EastBay! I have breast cancer and it would be so easy to drive to ValleyCare to have my treatments in Pleasanton instead of crossing the Bay. This is a great move ValleyCare, fingers crossed and prayers!

Posted by Anonymous, a resident of Livermore
on May 30, 2014 at 12:00 am

Palo Alto Medical Foundation is part of Sutter Health and is not part of Stanford Hospital.

Posted by health care provider, a resident of Vineyard Avenue
on May 30, 2014 at 12:23 am

Palo Alto Medical Foundation (PAMF) is not owned or ran by Stanford Hospital and Clinic and it is a private large multi-specialty group of physicians who is closely affiliated with Sutter Health system which originated from Sacramento and now own many hospitals in bayarea including Eden, Sutter Tracy, Altabate-Summit hospital, CPMC etc.
PAMF doctors admitted to many hospitals including Valleycare, Washington hospital, El Camino Hospitals etc like many other local private physicians. PAMF has nothing to do with Stanford Univerisity.

Posted by Healthcare provider, a resident of Livermore
on May 30, 2014 at 5:21 am

This relationship with Stanford was created by Marcy Feit, the previous CEO. She deserves the credit for giving us such a great healthcare system.

Posted by Nurse, a resident of Another Pleasanton neighborhood
on May 30, 2014 at 7:06 am

to "Healthcare provider" - what a joke. Marcy Feit did nothing but drain the Valley Care organization for her own interests and to attribute this move to her is laugahable. The current leadership is doing a great job of cleaning up the mess she left for all of us. I'm excited about the Stanford affiliation and credit should be given where it is due.

Posted by Health Care Affiliate, a resident of Ruby Hill
on May 30, 2014 at 8:30 am

PAMF docs are affiliated with Stanford Hospital in that they do procedures such as heart caths. Dr Erik Price is an example. Google it .

Posted by Crooks Galore, a resident of Another Pleasanton neighborhood
on May 30, 2014 at 8:34 am

Almost all the entire indebtedness of ValleyCare is due to the excessive compensation paid to Marcy Feit and 4 executives reporting to her. Would still like to hear the details on why these people were given the bums rush, but I expect that there is still more to come out about their deeds or misdeeds.

Posted by Scott Walsh, a resident of Pleasanton Valley
on May 30, 2014 at 10:02 am

Happy to see Stanford in the mix. They got me back on my feet and forever greatful to Stanford and my Stanford Doctors!

Posted by Healthcare, a resident of Danville
on May 30, 2014 at 10:11 am

"Healthcare Provider": Marcy had NOTHING to do with the current deal with Stanford. You obviously don't have any insight into the happenings at ValleyCare. She ruined relationships, she did not create them. Scott is turning ValleyCare around. Credit needs to be given to the current administration. Business deals, even health care business, are created through relationships. The fact that Stanford wants to come to ValleyCare now, is proof of that.
Why is the Board not being held more accountable for the financial state of the hospital. Where is the outcry for that?? Isn't that their job? Marcy lied to you all and you didn't even think to look into anything? What about her salary/bonuses? She's not even in line with area hospital CEOs.

Posted by Healthcare provider, a resident of Livermore
on May 30, 2014 at 10:39 am

The board of directors over the last 40+ years were responsible for all salaries and wages . It takes years to build relationships, not a few months. Valleycare'simage in the healthcare scene was not created in the last few months

Posted by Healthcare, a resident of Danville
on May 30, 2014 at 11:02 am

Exactly, the board of directors were responsible for the salaries and wages, responsible for severely inflated salaries and wages. They were responsible for Marcy and other administrators taking home over a million dollars per year- while the equipment in the hospital was/is falling apart. Where is the accountability in that?

Posted by Cholo, a resident of Livermore
on May 30, 2014 at 11:06 am


Posted by tomwho, a resident of Foothill Farms
on May 30, 2014 at 1:15 pm

Stanford Hospital is affiliated with the VA Health care System. Will that also apply to ValleyCare?

Posted by tomwho, a resident of Foothill Farms
on May 30, 2014 at 1:15 pm

Stanford Hospital is affiliated with the VA Health care System. Will that also apply to ValleyCare?

Posted by interested reader, a resident of Livermore
on May 30, 2014 at 4:19 pm

VA Palo Alto Health Care System is not associated with Stanford Hospital & Clinics.

Posted by Concerned Pleasanton resident, a resident of Pheasant Ridge
on May 30, 2014 at 5:30 pm

Great news! Hopefully, any other Valley Care affiliations like the one with UCSF Benioff Childrens hospital will vanish and be replaced by Stanford Children's hospital (Lucille Packard Childrens hospital) too.

Posted by Healthcare Provider, a resident of another community
on Jun 2, 2014 at 9:41 am

Regarding the relationship between Stanford and Palo Alto Medical Foundation, the relationship was much closer 30 years ago when PAMC was privately owned and many of its physicians had teaching appointments at Stanford, and with only one office in Palo Alto, almost all procedures were done at Stanford. With Sutter's purchase of PAMC, now named PAMF, that relationship is more strained. Sutter has expanded across the entire Bay Area and universities also are trying to expand into the communities to retain referrals.

Most VAs have medical school affiliations and Stanford residents staff clinics at the Palo Alto VA, but the VA system is completely separate.

Posted by RN, a resident of Livermore
on Jun 5, 2014 at 11:15 am

What are you thinking? You don't get to the point of signing letters of intent with Stanford after 3 months of talks, these discussions & due diligence process has been in the works since last year. The affiliation process with Stanford was begun under Mrs. Feit's leadership. I bet she was tough during the negotiations because she knows better than to give away the farm. One thing you haven't heard explained recently is the actual relationship ValleyCare & Stanford will have. Hopefully someone there will try and maintain some independence so every decision doesn't have to go to Palo Alto.

Posted by Employee and neighbor, a resident of Birdland
on Jun 7, 2014 at 9:55 pm

The Stanford discussions started last year, but unfortunately stalled after Marcy Feit misrepresented some financials. The community is lucky that Scott Gregerson was able to keep the relationship progressing through this much needed leadership transition. I think that it is fantastic that the employee attitudes are beginning to improve too. Its time for the community hospital to be a part of the community. Involved with the community. Appreciative of the community.

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