Houston's St. Luke's Episcopal Health System says it will "transfer" into Catholic Health Initiatives, giving the sprawling not-for-profit health system a new footprint deep in the heart of Texas.
In exchange, CHI will transfer more than $1 billion to create an Episcopal Health Foundation to serve the area's underserved population. CHI will transfer another $1 billion for future investment in the health system, the two systems announced jointly.
"The relationship with Catholic Health Initiatives ensures the Greater Houston area will retain one of its great healthcare institutions, while best preparing St. Luke's to meet future changes in healthcare," Kevin Lofton, president/CEO of Englewood, CO-based CHI said in prepared remarks.
The name of the combined system will be shortened to St. Luke's Health System. The combined entities include all of St. Luke's: the Texas Medical Center campus, and suburban hospitals in The Woodlands, Sugar Land, Pasadena and The Vintage, the health systems said.
CHI will maintain all physician models and all employees will remain employees of St. Luke's. CHI will continue St. Luke's affiliations with Baylor College of Medicine, Texas Heart Institute, Kelsey-Seybold Clinic, Texas Children's Hospital and MD Anderson Cancer Center, the health systems said.
The deal is expected to be completed this summer after regulatory approvals.