Columbia/HCA Healthcare Corp. and Elk Grove, Ill.-based Alexian Brothers Health System expect to complete a three-hospital swap shortly, designed to solve geographic shortcomings in their systems.
The deal will be completed despite some grumbling from the archdiocese in San Jose, Calif., which does not want the Alexian Brothers' 192-bed hospital there to fall into the hands of a for-profit. The San Jose archdiocese's displeasure about the deal was noted in a Chicago Archdiocese newsletter and also acknowledged by Columbia.
"They weren't crazy about it, but they approved the deal and sent it on to the Vatican, which also approved it," Columbia spokesman Jeff Prescott said.
An Alexian spokeswoman said she was unaware of any criticisms.
In return for its San Jose property, Alexian will receive two Columbia hospitals in Hoffman Estates, Ill., near its headquarters: 195-bed Hoffman Estates Medical Center and Woodland Hospital, a 94-bed psychiatric facility.
The transaction, announced in August, has Alexian paying Columbia $281 million for the two facilities (Aug. 24, p. 18). In turn, Columbia is paying Alexian an undisclosed sum for the San Jose hospital.
The transaction allows Alexian to focus on a single geographic area. Nashville-based Columbia, meanwhile, has the option of transferring its inpatients from nearby 327-bed San Jose Medical Center to the Alexian hospital, thereby saving upward of $100 million on state-mandated seismic upgrades at the former facility. The Alexian property requires only $2 million in upgrades, officials said.