(Story updated at 4:55 p.m. ET.)
Dignity Health, San Francisco, continues to expand with the announcement that the company reached a definitive agreement to acquire U.S. HealthWorks.
The deal is expected to close in August and financial terms weren't disclosed. The transaction aligns with Dignity's goal of becoming “a national, integrated delivery network by 2020,” according to a news release (PDF).
Valencia, Calif.-based U.S. HealthWorks will operate as a wholly owned subsidiary of Dignity. Dignity earlier this year switched names from Catholic Healthcare West. U.S. HealthWorks operates 172 medical centers in 16 states and employs more than 2,700, including about 800 affiliated care providers, according to the release.
“We are excited to bring U.S. HealthWorks into the Dignity Health family,” said Dignity President and CEO Lloyd Dean in the release. “This allows us to expand our healthcare ministry into 16 states, and it strengthens our ability to deliver the integrated, quality care that people expect and deserve.”
Officials from Dignity said in the release that they plan on expanding U.S. HealthWorks' operations nationally and also will invest in ambulatory surgery and imaging centers through partnerships with United Surgical Partners International and SimonMed Imaging.
Dignity Chief Financial Officer Michael Blaszyk said negotiations have been ongoing since April. He did not disclose financials, but said there was competition to make the purchase.
"We didn't overpay, but we did what we needed to sure it would become part of Dignity Health," Blaszyk said.
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