To Chicago: CHI merges with Dig­nity

The Denver Post - - BUSINESS - By Aldo Svaldi

Catholic Health Ini­tia­tives, which jointly op­er­ates Colorado’s largest hos­pi­tal group, Cen­tura Health, has signed a merger agree­ment with Dig­nity Health that will cre­ate a new non­profit Catholic health group based in Chicago.

CHI, based in Ara­pa­hoe County near the In­ter­state 25 and E-470 in­ter­change, em­ploys about 720 peo­ple in the metro area, not count­ing Cen­tura Health work­ers, and is one of the largest head­quar­ters in Colorado based on rev­enue. Dig­nity Health is head­quar­tered in San Fran­cisco.

The two sys­tems will bring to­gether hos­pi­tals and clin­ics across a 28-state re­gion. Chicago was cho­sen

as the base for han­dling the in­te­gra­tion be­cause of its cen­tral geo­graphic lo­ca­tion and flight ac­cess, a CHI spokesman said Thurs­day.

“We are join­ing to­gether to cre­ate a new Catholic health sys­tem, one that is po­si­tioned to ac­cel­er­ate the change from sick care to well care across the United States,” Kevin Lofton, chief ex­ec­u­tive of­fi­cer of CHI, said in a state­ment is­sued Thurs­day.

CHI spokesman Michael Ro­mano said it’s too early to know what im­pact the com­bi­na­tion will have on spe­cific jobs, de­part­ments, or ser­vices.

“We ex­pect in­te­gra­tion to take place over one to two years af­ter the com­bi­na­tion is com­plete, dur­ing which time we will op­er­ate in some ways as sep­a­rate or­ga­ni­za­tions,” he said.

CHI’s ex­ist­ing of­fices in metro Den­ver; Er­langer, Ky.; and Fargo, N.D., will re­main open and em­ploy­ees at those lo­ca­tions won’t be re­quired to move dur­ing the in­te­gra­tion, Ro­mano said.

But some stream­lin­ing will oc­cur at some point, he added.

CHI was formed in 1996 through the con­sol­i­da­tion of four Catholic health sys­tems. That same year, CHI teamed with Ad­ven­tist Health Sys­tem to jointly op­er­ate Cen­tura Health, which has 17 hos­pi­tals in Colorado and is based in Cen­ten­nial.

CHI op­er­ates 100 hos­pi­tals and 30 crit­i­cal care fa­cil­i­ties in 17 states. It re­ported $15.5 bil­lion in rev­enues and owned as­sets val­ued at $21.9 bil­lion in its most re­cent fis­cal year.

Dig­nity Health got its start in 1986 when two con­gre­ga­tions of the Sis­ters of Mercy com­bined. It has 400 care cen­ters and a net­work of more than 9,000 doc­tors across a 22-state re­gion. The 39 hos­pi­tals it op­er­ates are lo­cated in Cal­i­for­nia, Ari­zona and Ne­vada.

Dig­nity Health gen­er­ated $12.9 bil­lion in rev­enues and owns as­sets val­ued at $17.4 bil­lion. Both non­prof­its pro­vided more than $2 bil­lion each in char­ity care the past year.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.