MultiCare turns to outside physician provider network to serve three more of its hospitals by April
A business deal announced earlier this month between Tacoma-based MultiCare and Sound Physicians has raised concerns over a shakeup affecting providers who’ve served in local hospitals during the COVID-19 pandemic and now face the task of applying for new jobs or looking for work elsewhere.
In the announcement posted online Jan. 6, MultiCare said it was expanding its hospitalist program partnership with Sound Physicians “to create a region-wide, cohesive group of providers working together to improve the health of our communities.”
Hospitalists are medical specialists certified in hospital medicine, overseeing inpatient care.
MultiCare said that the COVID-19 pandemic “highlighted the importance of regional coordination among hospitalist teams.”
“Partnering with Sound Physicians, a Tacoma-based organization that provides services nationally, will help ensure efficient management of inpatient populations as a region instead of at the individual hospital level and will allow MultiCare to implement standard tools, processes and regionwide best practices,” the health system said in its announcement.
Sound Physicians has provided hospitalist services at MultiCare Good Samaritan Hospital in Puyallup, and the expansion will add Tacoma General, Allenmore (also in Tacoma) and Covington Medical Center to the list starting April 5.
Hospitalists and accompanying physician assistants were notified Jan. 5 and were told they could apply for jobs within MultiCare or with Sound Physicians, according to Marce Edwards, MultiCare spokeswoman.
The move affects 116 on staff.
No details were forthcoming from either MultiCare or Sound Physicians as to whether workers would be offered the same pay and benefits through the new partnership.
In the weeks since the announcement, multiple people with knowledge of the deal but who asked to remain anonymous for fear of retribution have reached out to The News Tribune to criticize the changeover and express concern over the providers’ futures.
“It’s a big deal and these are some beloved Tacoma physicians who just lost their jobs,” said one caller.
Joe Crane is regional administrator for the Union of American Physicians and Dentists, which represents providers at MultiCare’s Indigo Urgent Care clinics. The union has been in contract negotiations the the health system that have gone on for more than a year.
UAPD also represents physicians at Auburn Medical Center, which could be part of the transition to Sound Physicians in the future. The health system, in its announcement, said it was “ exploring the possibility.”
Crane told The News Tribune in response to questions via email: “Our members at (Auburn Medical Center) have language in their contract that limits MultiCare’s ability to outright contract them out.
“It’s not just our members dealing with these issues. The physicians at all these hospitals are being told they are being let go and they have to apply for their jobs with an outside contractor for less pay and more work. It seems like a slap in the face during the crisis we are facing with COVID.”
One physician affected by the change who did not want to be identified told The News Tribune he was concerned not only for finding work but staffing reductions ahead for those left behind.
“Most people are trying to stay strictly in Tacoma. I’m going to have to look three to four hours’ drive away,” for work, he said.
He noted, “Currently there’s less demand for hospital physicians around the country, and so MultiCare has kind of taken this moment to say, ‘OK, we’re just going to cut everybody loose.’ And then offer them a much, much worse deal through a contracted employment group.
“And, what are they going to do? There’s no jobs out there right now.”
He added some were planning to leave the hospitalist side and move into primary care.
He said only a few providers he knew were going to give it a try, but “75 percent, 80 percent of the group is saying that they will not work with Sound or MultiCare anymore.
“Everybody’s kind of scrambling.”
‘LOOKING FORWARD TO TEAMING UP’
Dr. Jon Roth is Sound Physicians’ regional medical director. He told The News Tribune in response to questions that he has been working closely with the physicians at MultiCare during the transition.
“We are a physician-founded and led organization with 20 years of experience in retaining great clinicians through transitions like this one,” Roth said. “We look forward to meeting individually with each provider about their career goals so they can continue to grow within Sound.”
He added, “We understand the pandemic’s impact on providers and clinician well-being is a top priority. Our comprehensive well-being program includes a wide range of benefits, tools and resources. We are looking forward to teaming up with our new colleagues and expect this partnership to support innovation that helps both organizations embrace the future of patient care.“
He did not offer comment as to whether pay or benefits would be reduced.
As for the impact on the community, Crane said: “I don’t think bringing a for-profit company is the solution that our community needs.”
“Turnover among physicians is never a good thing for a community,” he added.
In an internal statement given to employees announcing the change shared with The News Tribune by Edwards, MultiCare said: “We want to assure you that while your employer will change, our commitment to you as physicians and APPs (advanced practice providers) practicing at MultiCare will not change. There are many contracted groups at MultiCare including radiology, anesthesia, emergency, pathology and others. While we have a contract with the companies overseeing these programs, we have a commitment to the individuals who practice at our locations and who are on our medical staffs.”
MultiCare insisted that standards of care would not be affected.
“MultiCare – together with Sound Physicians – remains committed to providing the care our community needs and the experience our communities expect from us at this critical time,” the health system said in its public statement.
“This partnership will continue the good work happening at Tacoma General Hospital, Allenmore Hospital and Covington Medical Center.”
MERGERS, STAFFING AND THE PANDEMIC
Both MultiCare and CHI Franciscan, a part of the newly merged Virginia Mason Franciscan Health, have faced challenges balancing staffing with new demands the pandemic has brought on.
On Thursday, CHI Franciscan’s St Joseph Medical Center in Tacoma announced it was in urgent need of volunteers for its call center to help patients navigate online networks to get vaccines. It also seeks volunteers to help with vaccine clinic operations, in a move to free up hospital workers and help expand the overall efforts in the vaccine rollout.
Additionally, both health systems have faced labor push back from nurses unions over the handling of COVID-19 outbreaks, adding to more stress among the ranks over how notification and time off after possible COVID exposure has been handled.
Last year, MultiCare announced furloughs in a cost-cutting measure to help with the financial shortfalls stemming from the reduction of non-COVID related work such as elective surgeries.
At the end of 2020, MultiCare also announced it was acquiring ownership interest in Capital Medical Center in Olympia.
Bill Robertson, president and CEO of MultiCare, discussed the financial issues his health system had faced in a an appearance at the Horizons Economic Forecast virtual presentation held Wednesday, hosted by the Tacoma-Pierce County Chamber.
“We had a negative impact on our operating margin of about a quarter of a billion dollars, which is a pretty big number for us,” Robertson said. “We have mitigated a fairly significant piece of that, but still a very difficult year financially for us as institution.
“It has been very difficult with the reduction in non-COVID care activities, which is where most healthcare organizations create the sustainability they need, but that reduction is devastating to most organizations I’m aware of.”
He also noted the downturn created acquisition opportunities, leading “in some ways” to its Capital Medical Center deal. In MultiCare’s FAQs posted about the acquisition, it notes that Cap Med, while adding MultiCare to its name, “will remain a for-profit system for now and will continue to follow its current charity care policy.”
Additionally, “the transaction will not impact MultiCare’s nonprofit status or change its charitable and tax-exempt mission,” it noted.
This story was originally published February 1, 2021 at 5:00 AM.
