Potential merger would create a one of the nation's largest non-profit health systems, with more than 140 hospitals and hundreds of clinics and physicians' offices in two dozen states.
Dignity Health and Catholic Health Initiatives (CHI) have signed a non-binding letter of intent "to explore aligning their organizations and expanding their mission," the two non-profit health systems stated in a joint media release.
"Healthcare is at a turning point in our nation," Lloyd H. Dean, president and CEO of Dignity Health, said in prepared remarks. "Through a stronger strategic and financial foundation, an aligned ministry would accelerate our ability to advance our healing mission into the future."
Kevin E. Lofton, CEO of CHI, said aligning the two health systems "will allow us to play a far more significant role in transforming healthcare in this country. Together, we could enhance our shared ministry as the health industry transitions to a system that rewards the quality and cost-effectiveness of care."
Discussions between the boards of trustees at both health systems are expected to continue through early 2017.
San Francisco-based Dignity Health is already one of the nation's largest non-profit healthcare systems, with a 22-state network that includes 39 acute care hospitals, more than 9,000 affiliated physicians, 62,000 employees, and more than 400 care centers.
Englewood, CO-based CHI is the nation's third-largest nonprofit health system and operates 103 hospitals in 18 states, including four academic health centers, a teaching hospital, and 30 critical-access facilities.
The two health systems' respective strengths complement one another, Dignity Health and CHI in their joint statement. CHI has a diverse geographic footprint with clinical service lines and home-health capabilities, and has successfully partnered with researchers and educators. Dignity Health has scaled systemwide initiatives to ensure consistent medical practices.
There is no geographical overlap of acute care facilities between the two systems, and both include Catholic and non-Catholic healthcare affiliates with a mission to serve the poor and underserved.
Precision Medicine Alliance Could Affect 12 Million Patients
Monday's announcement of the letter of intent follows last month's announcement that the two systems formed a partnership called the Precision Medicine Alliance LLC, which will create the largest community-based precision medicine program in the country.