Newport Beach-based Hoag Memorial Hospital Presbyterian and Orange-based St. Joseph Health have received conditional approval from the California Attorney General’s office to develop an integrated regional healthcare delivery network.

The office of Attorney General Kamala Harris’ office sent a letter outlining certain conditions, including requiring the network to submit a detailed report on the specific steps they are taking to create a health systems, and for Hoag to provide community benefit services to the needy equal to or greater than $9.5 million for six years after the affiliation agreement’s closing date

Hoag and St. Joseph announced their plans to work together last August. The hospital operators have said they want to work together for several reasons, including the ongoing effects of federal healthcare reform.