Englewood, Colo.-based Catholic Health Initiatives and San Francisco-based Dignity Health signed a definitive agreement Dec. 7 to combine into a single Catholic health system comprising 139 hospitals across 28 states.
Here are seven things to know about the deal.
1. 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.
2. The organization will be jointly led by Kevin E. Lofton, CEO of CHI, and Lloyd Dean, CEO of Dignity Health. However, each individual will also maintain authority over specific areas of the combined institution. Mr. Lofton will take charge of the organization's mission, advocacy, sponsorship and governance, system partnerships, and health IT initiatives, while Mr. Dean will retain control of all clinical, financial and human resource operations.
3. The merged entity will be governed by the a newly formed board of stewardship trustees, comprising six members from each legacy board, along with Mr. Lofton and Mr. Dean.
4. The organization will be headquartered in Chicago and 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.
5. 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.
6. The organizations have maintained a variety of clinical partnerships and initiatives in the past spanning telehealth, microhospitals and precision medicine programs.
7. 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.