AdventHealth and Intermountain Health Form Joint Venture in Denver Area

Nonprofit health systems AdventHealth and Intermountain Health have announced plans to form a joint venture that will bring together eight hospitals and numerous ambulatory sites in the Denver area. The proposed partnership, expected to close early next year, aims to enhance access and quality of care for local residents.

The new entity will include five hospitals from AdventHealth and three from Intermountain Health, along with dozens of affiliated medical practices, clinics, urgent care centers, and emergency departments. This represents the entirety of AdventHealth’s presence in the region and all but one of Intermountain’s local hospitals, which is Intermountain Health Saint Joseph Hospital in Denver.

According to a regulatory filing from AdventHealth, the letter of intent outlines plans for membership interest in the new entity to be divided based on a fair valuation approach. AdventHealth is expected to hold more than a majority stake in the joint venture. The deal, however, is subject to regulatory approvals-a significant consideration given the highly concentrated hospital market in Denver.

A Closer Look at the Partnership

The partnership between AdventHealth and Intermountain Health is rooted in a shared commitment to delivering high-quality, compassionate care. David Banks, president and CEO of AdventHealth, emphasized this point in the announcement: “Partnering with Intermountain Health represents an opportunity to build on our shared commitment to deliver high-quality, compassionate care. By bringing together the capabilities of our organizations, we can expand access, augment services, enhance clinical quality, and continue improving the health and well-being of people across the greater Denver metro.”

AdventHealth will take the lead on daily operations, incorporating a “whole-person care approach” and aligned care platforms. This holistic strategy aims to address not only medical needs but also social determinants of health, such as housing, nutrition, and mental health support.

Intermountain Health’s CEO, Marc Harrison, echoed Banks’ sentiments: “This partnership is about creating a stronger, more integrated healthcare system that can better serve the growing communities in the Denver area. Together, we have the potential to make a significant impact on the health and well-being of our patients.”

What Comes Next

The proposed joint venture faces several regulatory hurdles before it can be finalized. The Denver area’s hospital market is already highly concentrated, with all eight hospitals slated for the partnership having a Herfindahl-Hirschman Index (HHI) value of at least 2,200. An HHI value of 1,800 is considered to indicate high market concentration, reflecting significant control by a few players.

If approved, the joint venture could reshape the healthcare landscape in Denver. Advocates argue that the partnership will bring more accessible and coordinated care, potentially reducing costs and improving outcomes for patients. Critics, however, raise concerns about reduced competition and the potential for higher prices.

Health policy experts are closely watching this development, as it may set a precedent for future collaborations between large health systems. The success or challenges of this joint venture could influence how other providers approach similar partnerships in densely populated areas.

For now, the focus remains on navigating the regulatory process and ensuring that the partnership aligns with the best interests of patients and the broader community. If successful, the joint venture between AdventHealth and Intermountain Health could serve as a model for delivering more integrated and patient-centered care in other regions facing similar healthcare challenges.