Hoag Hospital and Providence Health will go their separate ways at the end of January, with hospital officials assuring in an announcement that dissolving the previous merger would not interfere with the high-quality care patients in Orange County receive.

In a joint statement, the health care systems announced on Monday, Jan. 10, they had reached an amicable settlement agreement that would allow Hoag to become independent again. Hoag administration had filed a lawsuit in May 2020 pushing to end the affiliation.

“Although we are formally parting ways, we will have other opportunities to work together on behalf ofthe community,” Erik Wexler, Providence’s president of operations, said in a statement. “We look forward to future collaborations with our colleagues at Hoag, whom we continue to hold in high regard.”

Hoag became part of St. Joseph Health in 2012, and then in 2016, Providence and St. Joseph merged, creating then the nation’s third-largest nonprofit health system. The companies had sought a partnership to expand services and improve clinical outcomes through shared expertise.

“We appreciate the relationships we built over the last several years with the Providence and St. Josephteams,” Robert T. Braithwaite, CEO and president of Hoag Memorial Hospital Presbyterian, said in the joint statement. “This move opens up new avenues of collaboration in the future, as each institution brings its unique strengths to bear in service of patient health.”

When Hoag filed its lawsuit in the Orange County Superior Court to dissolve its affiliation from Providence its leadership said the move was so the hospital could better stay on mission to serve the local community, calling the current structure “not in the best interest of our patients, physicians and team members.”

Officials from Providence responded that Hoag’s timing couldn’t have been worse given the growing pandemic and argued the split could harm local patients. “Our relationship has been strong since 2012, the Hoag leaders’ so-called ‘realignment’ plan would negatively impact patient care, diminish resources and medical expertise available to Orange County.”

In Monday’s statement, officials with the two health systems said they will work together to ensure a seamless transition. The statement said officials with both entities would have no further comments.

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