Ascension and Presence Health have taken an important step forward in their effort to join forces.
Six months after the two systems signed a letter of intent for Ascension, the nation's largest Catholic health system, to acquire Presence, the systems announced Thursday they have now inked a definitive agreement.
Under the deal, Chicago-based Presence would become part of Amita Health, a joint venture between Ascension's Alexian Brothers Health System and Adventist Midwest Health. Presence's 10 hospitals, its outpatient clinics and other facilities would join Amita Health. Rehabilitation services, home health and retirement community operations would join Ascension's senior-care subsidiary. Presence operates 27 long-term care and senior living facilities. In a statement, the companies said they expect the deal to be finalized "soon." It must still get regulatory approval.
Ascension CEO Anthony Tersigni wrote in a statement that the systems are dedicated to providing compassionate, personalized care for all, but especially for those most vulnerable and living in poverty.
"We believe that by coming together, we will strengthen Catholic healthcare as we provide affordable, accessible and quality care to the community," he said.
Presence CEO Michael Englehart said in a statement that joining Ascension and Amita Health is a "natural evolution" for Presence given the systems' shared mission, vision and values.
Ascension is reportedly in talks to merge with Providence St. Joseph Health, although neither system has confirmed the rumor. Last month, Ascension CFO Anthony Speranzo told Modern Healthcare that the system's operating margin is being challenged by soft volumes. The system is also struggling with rising pharmaceutical costs and provider taxes, he said.
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