In a move that will double its presence in the Los Angeles area, Catholic Healthcare West announced plans last week to acquire the only two California hospitals owned by Houston-based Sisters of Charity of the Incarnate Word Health System.
St. Bernardine Medical Center in San Bernardino and St. Mary Medical Center in Long Beach will merge with San Francisco-based CHW, executives said. The hospitals had combined annual net revenues of $251 million in 1995. The deal, which executives expect to close by June 1, will give CHW 26 hospitals.
Upon completion of the deal, CHW will form CHW Southern California, a regional system that will include St. Bernardine, St. Mary, St. Francis Medical Center in Lynwood and St. Vincent Medical Center in Los Angeles. The new system will be led by one chief executive officer and one board.
"The creation of CHW Southern California furthers our goals of preserving and enhancing our value-based, non-profit healthcare ministry in California," said Richard Kramer, CHW president and CEO.
The Houston system's sponsor, Sisters of Charity of the Incarnate Word, will become a "shared" sponsor of the facilities along with CHW's four other co-sponsors: Sisters of Mercy Regional Communities of Burlingame and Auburn, Calif.; Adrian (Mich.) Dominican Sisters.; and Daughters of Charity, Province of the West, based in Los Altos Hills, Calif.
CHW became one of the nation's largest Catholic systems last year when it merged with Daughters of Charity National Health System-West, Los Altos, Calif. CHW has $3.1 billion in assets, annual revenues of more than $2.3 billion and more than 8,000 affiliated physicians in Arizona, California and Nevada.