California regulators are rejecting a proposed merger between Adventist Health System and St. Joseph Health System.
The state's Department of Justice (DOJ) sent a letter (PDF) that denied the proposed deal, which would have created a joint operating company with authority over each health system’s facilities in Humboldt, Lake, Mendocino, Napa, Solano, and Sonoma counties. Health system officials submitted a proposal to state officials in June 2018, saying they would improve access to quality healthcare throughout the Northern California region.
“The California Department of Justice is responsible for ensuring that any proposed sale or transfer of a non-profit health facility protects the health and safety interests of the surrounding community. After careful review we found this proposal falls short of protecting consumers,” said Sean McCluskie, chief deputy to the California attorney general, in a statement.