Golden State Today

California Attorney General Rob Bonta has conditionally approved the merger of Rady Children’s Hospital and Health Center with Children’s HealthCare of California. This affiliation will include subsidiaries such as Children's Hospital of Orange County (CHOC) and CHOC at Mission, forming a unified healthcare delivery system under the new entity, Rady Children’s Health. The approval is required under state law for any nonprofit hospital transaction involving a sale or transfer of control.

Attorney General Bonta emphasized the importance of maintaining access to affordable specialized medical services for children in Southern California. He stated, "Our children deserve access to affordable specialized medical services that support their health and well-being." He added that these conditions would ensure families have continued access to quality pediatric care while preserving competition in the region's healthcare market.

The merger will impact counties including Orange, San Diego, Riverside, Imperial, San Bernardino, and parts of Los Angeles. The Attorney General's office outlined several conditions based on expert analysis and its investigation to maintain service quality and competitive practices.

Key conditions include maintaining existing services for 10 years, including those for Medi-Cal patients; keeping open medical staff privileges; protecting labor force continuity; refraining from anticompetitive practices; limiting price increases on contract renewals; providing charity care; and ensuring community benefits continue.

The Healthcare Rights and Access Section (HRA) within the California Department of Justice will oversee compliance with these conditions. HRA focuses on enhancing healthcare affordability, accessibility, and quality across various domains including nonprofit transactions and consumer rights.

A copy of the conditional approval letter is available online.