A historic reunion of healthcare iron triangle: Chinese Hospital, CCHP Health Plan, Chinese Community Health Care Association

(SAN FRANCISCO) Chinese Hospital, CCHP Health Plan, and Chinese Community Health Care Association (CCHCA) have been highly regarded as the healthcare iron triangle for the San Francisco Chinese community for decades. After 7-year legal battles and disputes, three health care organizations hosted a joint press conference on August 19 to announce their historic reunion coming back together to provide a better service for the community.

The historic Chinese Hospital was established by the early Chinese immigrants in San Francisco Chinatown back in 1899. The 123-year-old Chinese Hospital is a community based non-profit hospital and has been recognized nationwide as a model community hospital.

The Chinese Hospital has also been known for its culturally and linguistically competent health care service for the Chinese immigrant community.

In 1982, a group of independent Chinese American physicians who served in Chinatown and the Chinese Hospital founded CCHCA which is a medical group with a non-profit status.

Four years later in 1986, the doctors at the CCHCA founded another organization, CCHP which is a health plan especially designed for the Chinese community in San Francisco and the north region of San Mateo County.

The partnership between Chinese Hospital, CCHP Health Plan, and CCHCA became a nationally recognized model to provide a comprehensive health care service for the community.

But the disputes and the legal battle among three organizations began in 2015. During the past 7 years, members of the Chinese community have also suffered from the disputes by having fewer doctors and specialist physicians on their health plans to choose for treatments. Meanwhile, the Chinese Hospital has faced a number of challenges including financially.

On August 5, 2015, CCHCA filed its first lawsuit against CCHP Health Plan for breach of covenant of good faith and fair dealing, inducing breach of contract.

Prior to the lawsuit filings, Brenda Yee, then CEO of both Chinese Hospital and CCHP Health Plan, planned to implement a new policy for having the doctors signing up as employees to replace the independent practice model.

In September of 2015, the Chinese Hospital and CCHP Health Plan under Yee's administration filed a cross-complaint lawsuit against CCHCA for misinformation carried out by its management.

All American Medical Group (AAMG) was born during the disputes and founded by the CCHCA doctors in 2015. CCHCA lost its first lawsuit in the legal proceedings.

On August 19, 2020, CCHCA filed its second lawsuit at the San Francisco Superior Court against the Chinese Hospital for breach of contract, money due, conversion and for declaratory relief.

Two years later, on August 8, 2022, CCHCA filed papers in court to settle the second lawsuit with the Chinese Hospital. CCHCA dropped the lawsuit as part of the settlement. The Chinese Hospital would dedicate one of the floors at the new hospital building in CCHCA’s name to recognize the contribution of the doctors to the hospital and celebrate CCHCA's 40th anniversary.

Three key health care components of the healthcare system within San Francisco Chinese community co-hosted a press conference on August 19 to announce the new partnership between them.

"40 years ago, the community physicians who had supported the hospital throughout its history, organized into a non profit association to better serve our community and provide culturally competent healthcare," said Dr. Mai-Sie Chan, current President of CCHCA. "This occasion marks the start of an era of even greater cooperation between independent doctors and the hospital to care for our community."

"I started serving our community in San Francisco in 1975. 1982 was a turning point, since we founded CCHCA. Then we founded CCHP in 1986. Three organizations provided good quality and affordable health care to the community. Because of our partnership, we were able to build such an excellent new hospital building for the Chinese Hospital, and we could recruit more young community doctors," said Dr. Eric Leung, past President of CCHCA. "I am grateful that all of us are able to put the disagreement behind. We can continue to give back to our community."

Chinese Hospital CEO Jian Zhang stated that three parties would work out in more details soon about the collaboration.

"I’m happy that the Chinese Hospital has recognized the importance of independent doctors through this honor. We hope that this gesture will soon lead to contracts with AAMG that will allow our patients to utilize Chinese Hospital for services other than hospitalization," said Dr. Joseph Woo, President of AAMG.