Providence and Hoag will end their merger this month, the nonprofit healthcare group announced Monday night.

Hoag, a small health system in Southern California, Sue Providence In 2020, the Catholic system, which claims to have 52 hospitals, did not prevent the end of its population health initiative. Hogg will separate from Providence, based in Renton, Washington, on January 31. nine years after they are combined.

“While we have officially parted ways, we will have other opportunities to work together on behalf of the community. We look forward to working with our colleagues at Hoag in the future, and we will continue to hold them in high regard,” Erik Wexler, president of operations in Providence, said in a news release .

Hogg Memorial Hospital Presbyterian Chief Executive Robert Braithwaite said in a release that the separation opens up new avenues for collaboration.

The groups reached a settlement but declined to elaborate.

Hogg’s lawsuit claims that Providence’s centralized governance model allegedly deprives Hogg of local decision-making power.Hogg executives have had a series of cultural, financial and operational conflicts tell modern medical Last year, many of them were denied by Providence. Providence executives countered that Providence improved Hogg’s medical team, diagnostics, ambulatory surgery center, orthopaedic services and mental health services.

Most hospitals that joined the larger system—including Hogg-Presbyterian Memorial Hospital and Providence Hospital—generated more revenue, but did not become more efficient, modern medical care analyze Medicare Expenses Report from 2013 to 2019.

From 2015 to 2019, Hogg still had an operating margin of more than 5%, according to the statewide Office of Health Planning and Development data. Providence’s operating margin was 1.4% in 2015, negative 1.2% in 2016, and below 1% in 2020.

Providence said in its third-quarter 2021 earnings report that Hogg, which owns two hospitals and an orthopaedic institute in Newport Beach and Irvine, accounts for about 6% of Providence’s operating income and a share of Providence’s operating income. 17% of Dens’s unrestricted cash and investments.Southern California accounted for nearly a third of Providence’s operating income as of September 30, according to statistics financial documents.

Annual hospital merger deals fell to 71 in 2021, the lowest level since 2009 and the fourth straight year of declines, according to the healthcare consultancy. Thinking about the company. While still relatively rare compared to completed deals, there are about a dozen not-for-profit health systems dissolve the merger or abandon the merger proposal in the past three years.