Daughters of Charity Health System, a six-hospital network based in Los Altos Hills, Calif., is actively searching for a buyer.
DCHS, a Catholic-based health system, is soliciting proposals from all types of organizations, including Catholic, public, nonprofit and for-profit systems.
"After careful consideration, our board, management team and advisers have determined that the sale of our hospitals is the most sound and responsible business decision," said Robert Issai, president and CEO of DCHS, in a news release. "Like other health systems across the country, we recognize that the way healthcare is provided today — where it is offered, how it is paid for, how it is measured — is changing dramatically, and we believe that new ownership is in the best interest of the communities we serve."
DCHS officials did not disclose if any organizations have already submitted bids or what the financial terms of a potential sale could be. According to DCHS' report for fiscal year 2013, which ended June 30, the health system had approximately $1 billion in total assets and posted a $90.7 million operating loss.
In March 2012, DCHS signed a memorandum of understanding to merge with St. Louis-based Ascension Health. The system later signed an affiliation agreement that December. DCHS still maintains the affiliation agreement with Ascension, but its hospitals will not merge with Ascension.
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