The former director of operations at Holzer Clinic in Athens has now joined OhioHealth Corp. in a new position created to bolster the health-care organization's efforts in southeast Ohio.

OhioHealth is a network of not-for-profit hospitals and health-care organizations that includes member Doctors Hospital in Nelsonville, as well as affiliate O'Bleness Memorial Hospital.

Doctors Hospital CEO Steve Swart Friday confirmed that Steve Davies, formerly of Holzer, will assume the new position of vice president of southeastern Ohio physician services with OhioHealth.

Over the past year, OhioHealth has been exploring tightening its relationship with O'Bleness, possible bringing it into member status. In July, the two organizations signed a non-binding letter of intent to "explore a closer, more formal working relationship," according to a press release. The letter of intent allows for more detailed sharing of information between both organizations during negotiations. Currently, officials say they are still performing due diligence on the matter, and a final decision has not yet been made.

Over the summer, O'Bleness, OhioHealth, Ohio University, the OU College of Osteopathic Medicine and associated physicians have been discussing how they might be able to work closer together to meet the health-care needs of Athens County, the release said.

Part of the impetus for creating the new position for Davies is to enhance this closer working environment. Swart said that Doctors Hospital already has a management agreement with University Medical Associates and with OU Student Health Services. Swart also serves as CEO of University Medical Associates.

"We've been searching for the right individual to bolster our light out here in southeast Ohio, and Steve (Davies) brings just a wealth of experience and knowledge," Swart said. "He will primarily be focused on the operations of University Medical Associates, Student Health Services, and also our clinical operations here at [Doctors] Hospital."

Amidst rumors that OhioHealth would be taking a more active role at OU's Hudson Health Center, Swart cited an October 2004 management agreement with the university for its Student Health Services.

"I wouldn't say there's any specific effort or charge to explore further relationships," Swart said. "We're trying to get our hands around the day-to-day management and make sure students have an excellent experience at Hudson and provide any assistance we can."

Swart described University Medical Associates as the faculty practice plan for OU's College of Osteopathic Medicine. He said OhioHealth had signed a management agreement with UMA in January 2009 to provide the day-to-day management services for that faculty practice plan. UMA and Hudson Health made an agreement in September 2009, Swart said, wherein UMA provides the interim medical director for Hudson, as well as some physician services.

When asked whether the new position for Davies is intended to create a network of physicians, which is similar to that at Holzer Clinic, Swart said Davies' role would be to help create a sustainable health-care delivery system in southeast Ohio.

"The component that he's going to be focused on is the physician component," Swart acknowledged. "Right now, our partners are UMA and Student Health Services. At this point we're really not looking at expanding that network. We're more focused on creating the right model for sustainable health care with a long-term approach."

O'Bleness fits into this scenario, Swart said, in that Davies will be in contact with UMA physicians who practice at O'Bleness. Swart said that Davies' position is not related, however, to the due-diligence process involved with O'Bleness' possibly becoming a member.

As for that process, Swart said it is continuing.

"OhioHealth and O'Bleness are both committed to seeing the due-diligence process through. We're close, but we're not there yet," Swart said. "We probably still have a few months of work to conclude. I would say both parties are highly committed to the communities of southeast Ohio and creating sustainable health care."

Swart said that all of the medical entities "“ OhioHealth, O'Bleness, UMA and OU "“ are committed to delivering outstanding health care to Athens.

So what is the tangible effect of this new position and these interconnected relationships on people receiving health-care services in Athens County?

"First and foremost, everyone's interested in creating sustainable health care," Swart said. "We're trying to create the right model of delivery so it's sustainable. Second is we would like to not only ensure that we keep the current level of quality care here, but that we raise the bar and provide services that may not be available locally now, in the future."

This includes expanding underrepresented specialty areas, Swart said, as well as keeping more surgeries local and expanding orthopedics in Athens County.

With regard to rumors that the possible membership of O'Bleness is in trouble because of high union salaries at the hospital, Swart called this speculation. And OhioHealth spokesperson Mark Hopkins noted that the due-diligence process involves looking at every aspect of an operation.

"You look in every closet. You look at every aspect of the way the other organization conducts itself," he said. "Everything is under the magnifying glass."