CHI's Acquisition of St. Luke's Episcopal Health Detailed
"Since they were not able to reach agreement with Peace Health, this acquisition is not a big surprise," Kong said in an email exchange. "The cultural values fit and the opportunity to expand into Houston makes this deal very attractive for CHI and St Luke's."
"I like the fact that CHI is funding $1 billion to create a new Episcopal Health Foundation that will be focusing on providing care and health education needs of the underserved population," Kong says. "This demonstrates a fit of common values and the commitment of another $1 billion demonstrates CHI's commitment to support St Luke's growth and quality patient care."
"It will be interesting to see if they will receive regulatory approval for this transaction. Since CHI is already the second-largest non-profit hospital system in the US regulators are taking a closer look to make sure there's still fair competition and competitive pricing if they approve the merger."
The Right Reverend C. Andrew Doyle, Bishop of the Episcopal Diocese of Texas, said in prepared remarks that while the deal means that the Episcopal Diocese of Texas will no longer provide acute care, "this new foundation will address a widening gap in healthcare throughout our 57-county area. There is a care vacuum that must be addressed, including access to healthcare, prevention, community and environmental health, poverty, education and health disparities."
John Commins is a senior editor with HealthLeaders Media.
- CMS to Speak with ICD-10 Backers Tuesday
- Feds Stonewall ICD-10 Summit
- Boston Marathon Bombing Yields Lessons for Hospitals
- Governor Details Healthcare Payment Reform Path in Arkansas
- Hospital Groups Back NQF Report on Patient Sociodemographics
- Managed Care Contract Negotiations Morph Under PPACA
- Cyberattack Drill Exposes Healthcare's Vulnerabilities
- Physician Payment Data is Where the Action Is
- NY Abolishes Written Practice Agreement for NPs
- MetroHealth Revs Its Population Health Engine