Health First, Parrish pledge collaboration, end legal actions against one another

Health First and Parrish Healthcare — two of Brevard County's leading health care providers ― say they have resolved their legal differences and are forming a new collaborative relationship they say will benefit consumers.

In a joint statement, Health First and Parrish called it "a new day for Brevard’s not-for-profit health systems."

"While the details of the new relationship are not yet finalized, the community can expect the lawsuitbetween the two organizations to be settled, and the two organizations working more collaboratively together, with a focus on the future of health care for Brevard and expanded access to affordable care for all," the statement said.

The hospital companies said Parrish Chairman of the Board Robert Jordan was instrumental in bringing officials of the Health First and Parrish together "upon the departure of Health First’s former leaders to structure a newcollaborative relationship between the two organizations."

Health First in April named Maryland health care company executive Terry Forde as its new president and CEO. Forde will take over in August. He will succeed Steve Johnson, who retired as Health First president and CEO in February 2023.

How the agreement came about

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In an interview, Jordan said the discussions between Parrish and Health First officials had been going on for nearly two years. Jordan said the talks were triggered by a casual discussion he had with Brett Esrock ― who until recently was Health First's chief financial officer and chief operating officer ― during an economic-development event they both were attending.

"I approached him, and said we needed to resolve our differences," Jordan said, and that the companies should be spending money on improving health care in the community, rather than giving money to attorneys to defend lawsuits against one another.

Jordan said, under the agreement, Health First and Parrish would drop various legal action against one another — some of which date back a decade ― involving a range of issues related to competition, facilities and medical staff.

"We've been doing this for 10 years," Jordan said, referring to the various lawsuits. "Neither side wanted that."

Jordan said the hospital companies also are in the process of increasing their collaboration. For example, they plan to proactively refer patients to one another's hospitals if one company has more technology or medical staff expertise in certain surgical procedures or treatments.

In addition, Jordan said, Health First will work to include Parrish Medical Center in Titusville in its health insurance plans.

Suntree-based Health First operates four local hospitals in Brevard County — Cape Canaveral Hospital in Cocoa Beach, Holmes Regional Medical Center in Melbourne, Palm Bay Hospital and Viera Hospital. Health First's operations also include health insurance plans; a multispecialty medical group; and outpatient and wellness services.

Titusville-based Parrish Healthcare operates Parrish Medical Center, Parrish Medical Group and the Parrish Health Network, a coalition of health care providers, insurers and others.

Jordan said, although there will be more cooperation between Health First and Parrish, that does not mean there are any plans to merge the companies.

"That is not happening at all. Zero chance," Jordan said. "We are competitors, but we're not adversaries."

What health care officials say

The companies said introductory meetings already have occurred between Forde and Parrish Healthcare CEO George Mikitarian. Forde currently is president and CEO of Adventist HealthCare, headquartered in Gaithersburg, Maryland, a suburb of Washington, D.C., and will be joining Health First next month.

The statement indicated that Forde "is fully supportive" of the initiative, and "looks forward to both not-for-profit organizations focusing their resources and attention to fulfilling their respective missions for the benefit of the people of Brevard County."

“It was time for our two organizations to come together to do the right thing for the community andBrevard,” Health First Chief Administrative Officer Paula Just said. “With barriers removed, differences were set aside, relationships mended, and a path forward for health care in Brevard is being paved."

Mikitarian recognized the efforts of Just, Esrock and Health First Chief Legal Officer Nicholas Romanello in working to resolve the issues between the two health care companies.

“Without their leadership, tenacity to reach common ground and unwavering commitment to doing what’s right for the people and communities we both serve, this would not have been possible," Mikitarian said. "I have long advocated that collaborative partnerships over costly competition or disruptive acquisitions are the way to improve quality, safety, service and reduce costs.”

Johnette Gindling, president and CEO of the Rockledge-based Space Coast Health Foundation ― which works on collaborative projects that will meet the health care needs of the community ― said the agreement between Health First and Parrish is a positive for the community.

“Whenever organizations put their differences aside and prioritize the community, residents benefit,” Gindling said. “This new collaborative relationship can make a true impact on health care in Brevard, especially the critical need of improving health care.”

Jordan said the board of directors of the North Brevard County Hospital District that operates Parrish unanimously approved the agreement last week. He said Health First executives were able to approve the deal without the need for action by Health First's board.

"It definitely was a great day" to get final approval of the agreement, Jordan said. "I just feel the stars aligned."

Dave Berman is business editor at FLORIDA TODAY. Contact Berman at dberman@floridatoday.com , on X at @bydaveberman and on Facebook at www.facebook.com/dave.berman.54

This article originally appeared on Florida Today: Health First, Parrish pledge collaboration, end legal actions against one another