Statement from City of Hope on Creation of Medical Foundation

DUARTE, Calif., May 4 /PRNewswire-USNewswire/ -- City of Hope is saddened and disappointed with the decision by the leadership of the California Cancer Specialists Medical Group (also known as City of Hope Medical Group) to terminate negotiations with City of Hope on joining in the formation of a not-for-profit medical foundation and to file a misguided lawsuit against the institution.  

The establishment of a medical foundation is a natural outgrowth of City of Hope's nearly 100-year commitment to serving as a center of leading research and compassionate patient care of the highest quality.  Medical foundations are a common, well-proven, legally accepted model in California, and City of Hope is structuring its medical foundation in scrupulous adherence to all applicable requirements, including California law related to "corporate practice of medicine."  City of Hope will vigorously defend itself against the Medical Group's unfounded claims.

City of Hope's medical foundation model promotes and increases physician leadership not only in the clinical setting but throughout the entire organization. It offers a level of physician governance that exceeds what is found in university settings and even in other established medical foundations in California.

The current contract between City of Hope and the California Cancer Specialists Medical Group, which expires by its terms on January 31, 2011, will remain in effect and City of Hope will honor and fulfill all of its commitments under the agreement until then. During this transition period, City of Hope will continue to provide the highest levels of services to patients in quality care and clinical research.  

Even if current physicians do not choose to join the new medical foundation they will continue to have privileges to treat patients at City of Hope and can provide uninterrupted care.  

City of Hope is unequivocally committed to establishing the foundation.  After careful analysis, City of Hope determined that a medical foundation is the best possible organizational model to benefit physicians, scientists, City of Hope's mission and most importantly, patients.  Having physicians and the institution work together as a unified team providing seamless attention to the care of each patient will lead to even more successful treatments and patient outcomes and more efficient delivery of care.  This is especially important for an academic research center like City of Hope as it responds to the challenges in the delivery of health care mandated by the reforms recently signed into law in Washington.  New requirements related to quality, efficiency and integration of the delivery of care will be met by City of Hope's ability to offer more coordinated, more efficient care to patients through a simplified infrastructure providing patients with a single source for billing, integrated medical records and delivery of transparent quality care.

This integrated model will not increase health-care costs to the state or to patients. To the contrary, the more efficient model of delivery should ultimately reduce those costs while at the same time assuring the highest quality.  

In California, many major medical centers, including Cedars-Sinai, Scripps, Catholic Healthcare West and Sutter Health, already have established medical foundations. Other institutions in the state are planning to form or have recently formed medical foundations.  

City of Hope's Board of Directors, understanding that the organization must adapt and change to preserve its important legacy, unanimously approved the formation of a medical foundation.  City of Hope has the financial resources, leadership and strategic vision to successfully implement this decision and ensure its legacy for the future.    

City of Hope is a leading research and treatment center for cancer, diabetes and other life-threatening diseases. Designated as a Comprehensive Cancer Center, the highest honor bestowed by the National Cancer Institute, and a founding member of the National Comprehensive Cancer Network, City of Hope's research and treatment protocols advance care throughout the nation. City of Hope is located in Duarte, Calif., just northeast of Los Angeles, and is ranked as one of "America's Best Hospitals" in cancer and by U.S. News & World Report. Founded in 1913, City of Hope is a pioneer in the fields of bone marrow transplantation and genetics. For more information, visit www.cityofhope.org.

SOURCE City of Hope