Trinity Health, Catholic Health East merger: create 2nd largest not-for profit system
- 0Jun 30, '13 by NRSKarenRN, RN, BSN AdminTrinity Health, Catholic Health East complete merger
Trinity Health and Catholic Health East officials announced plans to merge, the organizations have closed the deal and officially formed a health system that includes 82 hospitals in 21 states.
The new system creates the second-largest not-for-profit health system in the U.S. based upon $12.8 billion in operating revenue, trailing only St. Louis-based Ascension Health, according to Moody's Investors Service. The combined organization will be headquartered at Trinity's office in Livonia, while the system will maintain a divisional office where CHE is headquartered in Newtown Square, Pa.
...The increased scale also gives the new Catholic organization a bigger say in Catholic and other healthcare matters of national significance, said Swedish, who also serves as the chairman of the Catholic Health Association's board of trustees: "We will now have a unified voice that I think is substantial."
The past few years have been active ones for Catholic hospitals and systems. Boston-based Caritas Christi Health Care sold to private-equity firm Cerberus Capital Management, yielding Steward Health Care System.
Trinity Health, Catholic Health East merger part of new order
Trinity and Catholic Health East's news came a month after Ascension Health announced an agreement to take ownership of Marian Health System's 27 hospitals in Oklahoma, Wisconsin, Kansas and Minnesota. Ascension Health last week said it planned to sell its two Carondelet Health hospitals in the Kansas City, Mo.-area to HCA.
In January, Ascension Health created an umbrella company, Ascension Health Alliance, over its hospital system and stable of subsidiaries—to which the company recently added a group purchasing organization. Not long before that, Ascension Health formed a joint venture with a private-equity firm in 2011 that intends to buy Catholic hospitals in order to make sure they stay Catholic.
Another large Catholic player, then called Catholic Healthcare West, last year severed its formal ties to the Catholic church and moved forward under the name Dignity Health, with a commitment to continue its Catholic mission while expanding eastward by acquiring hospitals, Catholic or not.
Dignity Health in August paid $455 million to acquire U.S. HealthWorks, a network of 172 occupational health and urgent-care centers, deals that significantly increased the system's geographic footprint as well as its reach in outpatient care.
Trinity Health's hospitals are primarily in the Midwest, although the system owns 436-bed St. Agnes Medical Center in Fresno, Calif., and sponsors two small hospitals in rural Oregon. Its sole presence on the East Coast is 425-bed Holy Cross Hospital, Silver Spring, Md. Catholic Health East operates hospitals from Fort Lauderdale, Fla., to Portland, Maine, although the system intends to sell its Mercy Hospital there to Steward Health Care.Last edit by NRSKarenRN on Jun 30, '13
- 0Jul 4, '13 by DoGoodThenGoGet used to it folks! Hospitals and or healthcare systems all across the United States have realized the only way to survive for most is to become big or bigger. Large networks can then use their size to obtain everything from better reimbursement rates to maximizing services. Pity Saint Vincent's couldn't get it's act together.