The University of Alabama System's board of trustees unanimously approved an agreement to acquire Ascension St. Vincent's Health System.
Birmingham-based UAB will assume ownership of all Ascension St. Vincent's care sites under the agreement, announced June 25. The transaction still needs approval from federal regulators and the Catholic Church. UAB and Ascension expect the $450 million deal to close in the fall of 2024, according to the Shelby County Reporter.
"Patients will continue to have access to the healthcare services and providers they've come to trust and ultimately gain access to a larger care network," said Dawn Bulgarella, CEO of UAB Health System, in a news release.
The two organizations have worked closely together in the past, launching UAB/Ascension St. Vincent's Alliance in 2020 to improve access to care. The most recent agreement is a "natural next step" to achieving that goal, according to UAB's news release. After the transaction is complete, both health systems will continue serving their respective communities and Ascension's Foundation for Health Equity will keep providing grants investing in nonprofit organizations, according to Ascension St. Vincent's CEO Jason Alexander.
UAB Health, a $6.4 billion system, aims to strengthen hospitals in the state, especially as financial hardship has caused other hospitals nationwide to close.
"Our mission and vision to provide life-changing care and be the leader in improving the health and lives of all we serve aligns with the outstanding St. Vincent's caregivers and associates who have served these communities for years," said Ms. Bulgarella. "We look forward to supporting continued operations and providing opportunities for Ascension St. Vincent's caregivers and associates to essentially remain in their current positions; our goal is to support fulfilling and meaningful careers in service to our patients and communities."