Catholic Health Initiatives
, Englewood, Colo., announced a letter of intent to acquire Sylvania Franciscan Health, a six-hospital system based in Toledo, Ohio.
The deal is the latest in a string of acquisitions that have diversified and expanded operations for Catholic Health Initiatives, one of the largest U.S. health systems, under a strategy its executives say will better position the company to compete as markets respond to the healthcare reform law
Sylvania Franciscan operates two Ohio hospitals, 312-bed Trinity Health System, Steubenville, and Trinity Hospital Twin City, a 25-bed hospital in Dennison. The Catholic health system also operates four Texas hospitals, 25-bed Burleson St. Joseph Health Center, Caldwell, 18-bed Grimes St. Joseph Health Center, Navasota, 25-bed Madison St. Joseph Health Center, Madisonville, and St. Joseph Regional Health Center, a 232-bed hospital in Bryan.
The Texas hospitals expand Catholic Health Initiatives' operations in that state, which CHI first entered in 2013 with the $1 billion acquisition of St. Luke's Episcopal Health System, Houston, a system with $2.5 billion in net assets as of June 30, 2013. CHI has since formed a joint venture
for a hospital with the Baylor College of Medicine and an agreement for the four-hospital Memorial Health System of East Texas, based in Lufkin.
Church and state regulators must approve the Sylvania Franciscan acquisition. CHI and Sylvania Franciscan expect that terms of the deal will be finalized by the fall.
"We are excited about the possibility of joining CHI, whose culture and values are in alignment with those of our sisters," said Jim Pope, Sylvania Franciscan's CEO, in a news release. "After a substantial due diligence process to find a potential partner that shares our commitment to patients, as well as the mission of Catholic healthcare, we are confident CHI will enable us to continue our vision as well as the Franciscan charisma that is our foundation." Follow Melanie Evans on Twitter: @MHmevans