Rady Children’s Hospital, CHOC Plan to Merge

Two large Southern California pediatric health systems have agreed to merge.

Children’s HealthCare of California, the parent company of Children’s Hospital of Orange County (CHOC), and Rady Children’s Hospital and Health Center, the parent company of Rady Children Hospital-San Diego, said they will merge CHOC and Rady Children’s under a single parent entity called Health Rady child.

Rady Children’s includes a 511-bed children’s hospital that serves as the largest provider of comprehensive pediatric medical services in San Diego, southern Riverside and Imperial counties. It has more than 40 locations. The CHOC community includes hospitals in Orange and Mission Viejo and a regional network of primary and specialty care clinics serving children and families.

TO story in the San Diego Union-Tribune noted that Rady reported “just over $1 billion in net patient revenue in 2022 compared to $928 million for CHOC when combining the finances of its flagship hospital in Orange and CHOC Mission Hospital in Mission Viejo.”

CHOC and Rady Children’s have previously collaborated on initiatives that advance pediatric care, research and innovation, such as Project Baby Bear, a rapid whole genome sequencing (rWGS) initiative that rapidly diagnoses babies with rare diseases, and the of the Clinical Practice Transformation Initiative.

CHOC President and CEO Kimberly Chavalas Cripe and Rady Children’s President and CEO Patricio A. Frias, MD, will be named co-CEOs of the new parent company.

The hospitals said they would maintain separate medical staff and boards of directors and take advantage of their respective affiliations with the University of California and its medical schools at UC Irvine and UC San Diego.

“CHOC and Rady Children’s, both nationally recognized for clinical excellence and compassionate care, have presented a shared vision that puts children and their families first, guaranteeing them access to the best professionals, treatments and technology available in pediatric medicine “Rady said. Children’s Board of Directors President Paul Hering said in a statement.

The proposed merger will undergo regulatory review and the transaction is expected to close in 2024.

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