The value of Ascension Health's deal to acquire the three-hospital Alexian Brothers Health System based in Arlington Heights, Ill., could add up to about $645 million, including assumed debt, according to materials submitted to the Illinois Health Facilities and Services Review Board (PDF).
Alexian deal could run to $645 million
While there's no set purchase price, St. Louis-based Ascension would assume Alexian's debt, including refinancing. An audit provided to the board showed Alexian carrying nearly $490 million in long-term debt in 2010. They'd also commit up to $125 million for a children's and women's wing already under construction at Alexian's campus in Hoffman Estates, Ill. That project, so far estimated at $117 million, is expected to finish in 2013. Ascension also would fund up to $30 million in support of an Alexian long-term-care project in Tennessee.
Hospital officials have requested a Dec. 6 public hearing before the board, as the purchase requires state approval. The deadline to submit comment is Oct. 8 at the board's meeting. Ascension and Alexian finalized its deal earlier this month, but did not disclose financial details.
The deal for the suburban Chicago system should close on Jan. 1, and documents showed Ascension promising to maintain ownership of the facilities for at least three years. It includes the flagship 356-bed Alexian Brothers Medical Center in Elk Grove, Ill., plus 255-bed St. Alexius Medical Center and neighboring 141-bed Alexian Brothers Behavioral Center, both in Hoffman Estates. Ascension does not anticipate changing the number of beds at the three facilities.
Archbishop of Chicago Cardinal Francis George's letter supporting the acquisition was included in materials submitted to the board.
“Ascension Health is the largest Catholic healthcare system in the nation,” George wrote. “Its record of service in the more than 20 states it serves is exemplary. By Ascension Health's assuming the oversight of the Alexian Brothers ministries, Catholic healthcare services will be strengthened and preserved.”
The two parties have stressed the importance of having Ascension, the county's largest Catholic provider, in the Chicago market. The deal marks a return to the area for Ascension,. which in 2009 sold St. Anthony Hospital in Chicago.
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