St. Louis-based Ascension has taken another step in its effort to reorganize its portfolio — a strategy designed to enhance operating performance and ensure sustainability.
The latest transaction is in the Midwest. Ontario, Calif.-based Prime Healthcare has entered into an asset purchase agreement with Ascension to acquire hospitals and care sites in Illinois.
Here are six things to know about the transaction, jointly announced by the systems July 25:
1. The transaction includes the following hospitals:
- Ascension Holy Family (Des Plaines)
- Ascension Mercy (Aurora)
- Ascension Resurrection (Chicago)
- Ascension Saint Elizabeth (Chicago)
- Ascension Saint Francis (Evanston)
- Ascension Saint Joseph – Elgin
- Ascension Saint Joseph – Joliet
- Ascension Saint Mary – Chicago
- Ascension Saint Mary – Kankakee
It also includes the following post-acute and older adult living facilities currently operated by Ascension Living:
- Fox Knoll Village (Aurora)
- Villa Franciscan Place (Joliet)
- Heritage Village and Heritage Lodge (Kankakee)
- Resurrection Place (Park Ridge)
2. The sale is expected to close in the first quarter of 2025, subject to standard regulatory and canonical approvals, according to a joint news release from the organizations.
3. Once finalized, the acquisition will be the largest in the history of Prime, which operates 44 hospitals and more than 300 outpatient locations in 14 states.
4. As part of the deal, Prime is committed to investing $250 million in facility upgrades, capital improvements, substantial technology investments and system upgrades, the release said. Prime has also agreed to offer employment to "substantially" all associates.
5. "Our agreement with Ascension reflects our decades-long mission of saving, improving and investing in community hospitals and we are excited to bring these Ascension Illinois facilities into our Prime Healthcare family, preserving our shared values and mutual commitment to patient-centered care," Sunny Bhatia, MD, president and chief medical officer of Prime, said in the release. "Like Ascension, Prime Healthcare has a strong tradition of ensuring health equity and social responsibility. This transaction will enable a continuation of this tradition and expand our dedication to compassionate care, clinical excellence, and service to patients and the greater Chicago community."
6. Polly Davenport, president and CEO of Ascension Illinois, said in the release: "Ascension Illinois has been committed to our mission of serving all persons, with special attention to those who are most vulnerable. Prime Healthcare's mission and commitment to clinical excellence and health equity will carry on this legacy, ensuring that the greater Chicago area has sustainable, quality healthcare access long into the future. We are confident that Prime will continue its record of excellence and look forward to working in partnership through the sale close process."