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Providence Becomes Sole Member of INHS

November 07, 2013

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Empire Health Foundation and Providence announce restructuring of membership for Inland Northwest Health Services

Spokane, WA—The Empire Health Foundation (EHF) Board of Directors has reached agreement to discontinue its role as a member of Inland Northwest Health Services (INHS), making Providence the sole member of INHS. Providence will make a $40 million donation to the foundation as part of this membership restructure. The membership restructure will be completed by the end of the year.

“This is a win for the health of our communities in eastern Washington,” says Antony Chiang, EHF President. “This means the foundation can focus on its mission and expand its investment in ideas and organizations that improve access to health care, education, research and public policy that will result in a healthier region. And, this restructuring strengthens INHS’ role in providing vital health care services to the community,” continues Chiang.

Providence announced November 7, 2013 that it would become the sole controlling member of Inland Northwest Health Services (INHS) in Spokane, WA. Pictured (left to right): Antony Chiang, Empire Health Foundation President; Elaine Couture, Chief Executive - Providence Health Care; and Tom Fritz, CEO of INHS.

Empire Health Foundation filled an important role during the transition of INHS’ original membership model – a joint collaboration by Providence Sacred Heart and Holy Family and the former not-for-profit owner of Deaconess and Valley hospitals. In 2011, the new owner of Deaconess and Valley hospitals, Community Health Systems, agreed to restructure the membership of INHS and transition its membership in INHS to the Empire Health Foundation—the foundation formed in 2008 following the sale of Deaconess and Valley hospitals to Community Health Systems. At that time Providence Health Care became the majority member of INHS.

INHS, with more than 1,000 employees, has built a successful, financially-sound organization serving Inland Northwest communities for nearly 20 years. In 1994, the two not-for-profit hospital systems in Spokane – Sacred Heart and Holy Family along with Empire Health Service (Deaconess and Valley hospitals) – founded a collaboration called Inland Northwest Health Services. The collaboration was established to more efficiently manage the critical care transport (Northwest MedStar) and rehabilitation services (St. Luke’s Rehabilitation Institute) for both hospital systems.

The next development was a common medical record platform to be used by hospitals and providers in Spokane and throughout the Inland Northwest. Information Resource Management (IRM) was established as a division of INHS in 1996. Other major services by INHS include Northwest TeleHealth, Community Wellness, Health Training, and the Eastern Washington Center of Occupational Health & Education (COHE).

“Since INHS was formed, Providence has been a strong and supportive member of our organization,” says Tom Fritz, chief executive officer of INHS. “Now as our sole member, Providence demonstrates its ongoing commitment to INHS and strengthens our ability to expand services and grow even more jobs for the Spokane community.” For example, while IRM continues to grow its business nationally, they will play an important role in the expansion of Providence’s community electronic medical record system to more than 100 hospitals across its five-state region.

INHS will continue to provide services to all other hospitals, providers and communities throughout the Inland Northwest. INHS will continue as a separate not-for-profit corporation, and the INHS Board of Directors – which includes community representatives – will maintain its governance responsibilities.

“INHS is a vital community asset,” says Elaine Couture, chief executive of Providence Health Care. “During this time of dramatic change in health care as national and state level reform initiatives are implemented, Spokane must take a leadership role in transforming the health care system for the future by developing new models of care that reduce the cost of care, improve access, enhance quality and the patient care experience,” continues Couture. “The INHS Board, its leadership, and Providence believe that providers and consumers across the region will be best served through closer alignment of INHS and Providence. Our commitment is to continue to make the vital services INHS delivers across the Inland Northwest available and accessible to all, especially the poor and the vulnerable.”

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About Empire Health Foundation:

Empire Health Foundation’s mission is to transform our region into the healthiest in the state. EHF is the largest private foundation in eastern Washington dedicated to health philanthropy and grant making. EHF was formed as an independent health foundation as a result of the 2008 sale of Empire Health Services. The EHF board and staff are working diligently to act as good stewards of the Foundation’s resources for the benefit of our region. Examples of the Foundation’s initiatives include healthy lifestyles/obesity prevention, mental health, and health care access as key issues to achieve meaningful and sustainable change. For more information, visit www.empirehealthfoundation.org.  

About Inland Northwest Health Services:

Inland Northwest Health Services (INHS) is a non-profit corporation providing collaboration in health care services on behalf of the community. INHS divisions and service lines include St. Luke’s Rehabilitation Institute, Northwest MedStar, Information Resource Management, Community Wellness, Eastern Washington Center of Occupational Health & Education (COHE), Health Training, Northwest TeleHealth and the INHS Center of Philanthropy. For more information, visit www.inhs.org .

About Providence Health Care

In eastern Washington, the Providence Health Care regional network consists of 11 health care organizations working together to provide quality health and human services for Inland Northwest residents. It includes Providence Sacred Heart Medical Center & Children’s Hospital, Providence Holy Family Hospital, Providence Mount Carmel Hospital in Colville and Providence St. Joseph’s Hospital in Chewelah; and a full continuum of services including home health, assisted living, adult day health, skilled nursing, a physician division and PAML medical laboratories. Providence Medical Group, the physician division of Providence Health Care, includes more than 500 primary care, specialty care and hospital-based medical providers serving patients throughout Washington, Idaho, Montana and Oregon. More than 50 physician clinics are located in Spokane and Stevens counties. For more information, visit www.phc.org .

Historical Timeline of Inland Northwest Health Services

1994: The two not-for-profit hospital systems in Spokane – Sacred Heart and Holy Family, and Empire Health Service (Deaconess and Valley hospitals) – create a non-profit collaboration called Inland Northwest Health Services (INHS). INHS begins managing the critical care transport services (Northwest MedStar) and rehabilitation services (St. Luke’s Rehabilitation Institute) for both hospital systems.

1996 - 2008: Additional services are added to INHS:

  • Information Resource Management (IRM) – a common medical record platform for use by providers and hospitals throughout the Inland Northwest.
  • Community Health Education and Resources (CHER) – now known as Community Wellness provides health education classes, screenings and wellness assessments.
  • Northwest TeleHealth - a video-conferencing network among providers in Spokane and rural communities.
  • Center of Occupational Health & Education (COHE) - improve quality, cost and consistency of care for injured workers.
  • Health Training – training and professional education for health care providers and emergency responders.
  • The Center of Philanthropy – raises funds for INHS services and Children’s Miracle Network Hospitals.

2008: Community Health Systems (CHS) acquires Empire Health Services (Deaconess and Valley hospitals) and as part of the transaction, forms Empire Health Foundation as an independent health foundation. CHS assumes Empire Health Services’ membership of INHS.

2011: Community Health System agrees to reorganize the structure of INHS and transition its membership to Empire Health Foundation.

2013: Empire Health Foundation Board of Directors approves restructure of INHS membership, making Providence the sole member of INHS.

Empire Health Foundation and Providence announce restructuring of membership for Inland Northwest Health Services in Spokane, WA, to be completed by the end of the year (2013).