Catholic Hospital Roll-up

Ascension, based in St. Louis, is the nation’s largest Catholic health system with $15 billion in revenue. In February, Ascension formed Ascension Health Care Network, a first-of-its kind joint venture with private equity firm Oak Hill Capital Partners of Menlo Park, Calif., to buy Catholic health systems and hospitals that might otherwise sell to for-profit or other non-Catholic entities. Tersigni said at the time that they had identified nearly 300 Catholic hospitals nationwide with a total of $33 billion in revenue as potential targets and expected to close a deal this year. However, Ascension’s proposed acquisition of ABHS is not part of its Ascension Health Care Network joint venture, Tersigni said Wednesday.

Ascension Health plans to add Alexian Brothers Health System to its fold, and the two have signed a non-binding letter of intent.

Terms of the deal, announced Wednesday, weren’t disclosed. The organizations expect to complete the transaction before the end of the year.

Alexian Brothers Health System (ABHS), based in the Chicago area, is a Catholic health-care organization with nearly $1 billion in annual revenue and is governed by the Congregation of Alexian Brothers. It oversees operations of acute- and specialty-care hospitals, physician services, and ambulatory care clinics in Illinois, and senior living facilities, rehabilitation services and community-based programming for the elderly in Missouri, including St. Louis, and in Tennessee and Wisconsin.

Read the full article from the St. Louis Business Journal HERE

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