Ascension plans to sell 13 hospitals and other care sites in Illinois to Prime Healthcare, the systems said Thursday.
The definitive agreement marks another divestiture for nonprofit Ascension in the Midwest as it continues to shrink its footprint.
Related article:Ascension continues to downsize across Midwest
St. Louis-based Ascension sold three hospitals and an ambulatory surgical center to MyMichigan Health in March. In October, it announced a joint venture with Detroit-based Henry Ford Health to create a $10.5 billion health system that would involve rebranding eight Michigan acute-care hospitals as Henry Ford facilities.
The acquisition would be Prime Healthcare's largest deal and its entry into Illinois. The for-profit system said after a sale it would invest $250 million into the 13 properties, which include Ascension Holy Family in Des Plaines, Ascension Mercy in Aurora and Ascension Resurrection in Chicago. Other financial details were not disclosed.
Ontario, California-based Prime Healthcare had been looking to enter the Illinois market to increase its Midwestern presence, a spokesperson said. The health system operates 44 hospitals and 300 outpatient sites across 14 states.
The deal is expected to close in 2025's first quarter, pending customary regulatory approvals. Many employees are expected to be offered roles with Prime, the system said.
Ascension does not anticipate other large divestitures and plans to focus on committing resources to expanding outpatient care, said Ascension President Eduardo Conrado.
"We've been looking at horizontal investments and how we can grow our ambulatory footprint," Conrado said. "We've been looking at putting additional capacity in specific geographic areas and then looking at specific geographic divestitures. Illinois should be our last major [divestiture.]"
The transaction would leave Ascension with 12 hospitals and care facilities in Illinois.