St. Luke's Case Summary

All of the interviews mainly favored keeping local authority for St. Luke’s under an affiliation. The interviews have disagreements that Sutter committed to keeping local authority at St. Luke’s. There were responses that Sutter would not leave decision making power to St. Luke’s, and other’s thought Sutter would leave decision making power. Thus, decision made by Sutter Health local boards is approved through its reserve powers. Therefore, capital expenditures by affiliates of over $1 million, budgets, bylaws, strategic plans, and nomination of board members are related to the decisions made. Sutter Health employees are senior hospital managers. However, there were concerns by some interviews that the agreement provides structure for reorganizing
a local board, but the process would take some time. There were reports from Sutter Health of not rejecting a local board choice (St. Joseph Health/St. Jude Medical Center, 2016).