Ascension Promoting 9 Illinois Hospitals to California-Primarily based Prime Healthcare

California-based Prime Healthcare has agreed to purchase 9 Ascension hospitals in Illinois, in addition to related doctor practices, post-acute and senior residing services. 

The hospitals and senior residing services will be part of Prime Healthcare’s for-profit well being system that presently consists of 44 hospitals, greater than 300 outpatient places, and practically 45,000 workers and affiliated physicians. 

Headquartered in St. Louis, the Catholic nonprofit Ascension has 140 hospitals in 19 states and Washington D.C. In Might, Ascension reported internet revenue of $581 million for the fiscal third quarter ending March 31—a $1.3 billion turnaround from the identical interval final yr.

Phrases of the deal weren’t disclosed, however as a part of the acquisition, Prime Healthcare dedicated to investing $250 million in facility upgrades, capital enhancements, know-how investments and system upgrades. Prime Healthcare careworn that it has all accessible funding and no debt might be placed on the hospitals to finish this transaction. Moreover, Prime has agreed to make employment presents to considerably all workers.

The acquisition settlement consists of the next Ascension Illinois hospitals: Ascension Holy Household (Des Plaines), Ascension Mercy (Aurora), Ascension Resurrection (Chicago), Ascension Saint Francis (Evanston), Ascension Saint Joseph (Joliet), Ascension Saint Joseph (Elgin), Ascension Saint Mary (Kankakee) and Ascension Saint Mary and Saint Elizabeth (Chicago). 

The transaction additionally consists of the next post-acute and senior residing services presently operated by Ascension Dwelling: Fox Knoll Village (Aurora), Villa Franciscan Place (Joliet), Heritage Village and Heritage Lodge (Kankakee) and Resurrection Place (Park Ridge). 

“Ascension Illinois has been dedicated to our mission of serving all individuals, with particular consideration to those that are most weak. Prime Healthcare’s mission and dedication to scientific excellence and well being fairness will keep it up this legacy, guaranteeing that the higher Chicago space has sustainable, high quality healthcare entry lengthy into the longer term,” stated Polly Davenport, president and CEO of Ascension Illinois, in an announcement. “We’re assured that Prime will proceed its document of excellence and stay up for working in partnership by means of the sale shut course of.” 

Ascension has been busy making different offers. In June the College of Alabama at Birmingham Well being System Authority agreed to purchase Ascension St. Vincent’s Well being System in central Alabama for $450 million. Final yr, Detroit-based Henry Ford Well being and Ascension Michigan signed an settlement to enter a three way partnership that will merge eight Ascension southeast Michigan hospitals and Genesys healthcare services and property with Henry Ford’s. 

In a latest weblog put up on the group’s web site, Eduardo Conrado, Ascension’s president, described a strategic shift.  He famous that like most well being programs throughout the nation, “now we have confronted important challenges, together with decrease affected person volumes, price will increase, and labor shortages. These challenges have supplied Ascension the chance to reimagine our ministry and affirm our mission in a altering healthcare setting, particularly as extra communities search care in non-traditional settings.” 

Conrado stated that Ascension’s imaginative and prescient is to turn out to be a extra consolidated and built-in well being ministry, “specializing in assembly the shifting wants of our communities with particular consideration to those that are poor and weak. To realize this, now we have transitioned some hospitals by means of divestitures and invested in acute and non-acute care providers, together with ambulatory surgical procedure facilities, doctor practices, bodily and occupational remedy, at-home and digital care, imaging, and pharmacy. We imagine these adjustments have strengthened Ascension and higher positioned us to satisfy neighborhood wants whereas optimizing monetary efficiency and strategic capital spending.”

The Illinois transaction is anticipated to shut throughout the first quarter of 2025, topic to regulatory approvals.