Buyer: Catholic Health Initiatives
Seller: Dignity Health
Sector: Hospitals, Healthcare
CHI, Dignity Health sign definitive merger agreement
Catholic Health Initiatives (CHI) (Englewood, CO) and Dignity Health (San Francisco, CA) signed a definitive agreement to combine ministries and create a new, nonprofit Catholic health system. The new health system will include more than 700 care sites and 139 hospitals, offering people and communities access to quality care delivered by approximately 159,000 employees and more than 25,000 physicians and other advanced practice clinicians. The combined organization will be jointly led by Kevin E. Lofton, CEO of CHI, and Lloyd Dean, CEO of Dignity Health. Lofton and Dean will each maintain authority over specific areas of the combined institution. Lofton will take charge of the organization’s mission, advocacy, sponsorship and governance, system partnerships, and health IT initiatives. Dean will retain control of all clinical, financial, and human resource operations. The merged entity will be headquartered in Chicago and governed by the a newly formed board of stewardship trustees, composed of six members from each legacy board, along with Lofton and Dean. The organization will operate under a new brand name, which officials will select during the second half of 2018. Local facilities, however, will continue operating under their current brands.
The combined entity will be composed of 139 hospitals, 700-plus care sites, approximately 159,000 employees and 25,000-plus physicians and advanced practice clinicians. The new organization will also boast a combined revenue of $28.4 billion. The systems collectively spend roughly $4.7 billion on charity care, community benefit and unpaid cost of government programs, and will continue to do so once the proposed merger is complete. The proposed deal has been approved by Dignity Health’s board of directors and sponsorship council and CHI’s board of stewardship trustees. Officials expect to close the transaction during the second half of 2018, pending necessary regulatory approval.
Another noteworthy transaction as healthcare M&A continues to increase across many medical provider, distribution and supply sectors. For more information, contact us at Paragon Ventures LLC – Healthcare Mergers and Strategic Acquisitions at 800-719-1555 or visit our website at www.paragonventures.com