Hospital affiliations, after being overshadowed by large deals involving Allergan Inc., which was based in Irvine, are poised to come back as a major activity to watch as 2016 begins.
St. Joseph Health, the $6 billion Irvine-based Catholic hospital operator, will be working to wrap up its combination with Renton, Wash.-based Providence Health and Services during the early part of the year. The pair have signed an agreement to create parent company Providence St. Joseph Health, which will be in Renton. Irvine will be home to a satellite office.
Dr. Rod Hochman, current chief executive of Providence Health, will run the new organization. Deborah Proctor, St. Joseph Health chief executive, is staying on for a bit after previously saying she was retiring at the end of 2015.
Providence St. Joseph Health will have 14 board members, of whom St. Joseph Health and Providence Health will each appoint half.
Company to Watch Alphaeon Corp.
We’re picking the Irvine-based purveyor of “lifestyle medicine” based on what might come to fruition next year, including a potential entry into the public markets.
Alphaeon works with board-certified physicians on products and services not paid for by health insurance or government programs. It also provides services such as ShoutMD, a social media network where doctors can review and rate products they use in their practices.
The company will be busy integrating a new deal—it bought Orlando, Fla.-based Lensar Inc. in November for $59 million. Lensar makes laser devices used in cataract surgeries.
Alphaeon also begins 2016 with a pair of new corporate directors: former New Mexico Gov. Bill Richardson and James Xiaodong Liu, chief executive of Hong Kong-based Sailing Capital Management.
Chief Executive Robert Grant is cagey when asked about the possibility of an initial public offering for the company, which analysts and industry executives often mention as a candidate due to its unique business model.
Person to Watch Joe Kiani
The co-founder and longtime chief executive of Irvine-based Masimo Corp. was our person to watch for 2015 based primarily on his ongoing effort to eliminate preventable patient deaths in U.S. hospitals by 2020.
Kiani’s Patient Safety Movement urges hospitals, device makers and others to join forces to share data, which he says is the most reliable way to stop preventable medical errors. The group’s been busy adding members—it currently has healthcare professionals and hospital administrators who represent more than 1,400 healthcare organizations, as well as 44 medical technology companies, including Masimo.
He will also host the movement’s annual summit in January at the Laguna Cliffs Marriott Resort and Spa in Dana Point. Past summits have featured the likes of former President Bill Clinton.
