CHI's Acquisition of St. Luke's Episcopal Health Detailed

John Commins, for HealthLeaders Media , April 24, 2013

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.

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1 comments on "CHI's Acquisition of St. Luke's Episcopal Health Detailed"

Bruce E. Woych (4/24/2013 at 11:31 AM)
Across the country, and indeed around the developed world, private equity and for-profit medical marketing has become an insidious concentration forcing out traditional not for profit institutions that have served over many years. Privatized medicine has yet to prove it can get through a decade without price bubbles and capital flight, and the issue of cost reduction is a profit driven expediency rather than a patient based concern over financial security during and after health crisis. Trumped up arguments appear against religious controls that divide and conquer from internal factions that play directly into the transfer of assets to secularized "neutral" civil-legal categories...which turn out to be simply narrow market interests in the end and far from medical delivery as the ideal covenant it once was. It is interesting to see the distinction made here to actually widen the base of delivery to those "underserved" populations. This is not the focus for the revenue seeking concerns of privatization and outsourcing. It is very encouraging to see this non-profit competing against the market profit trend. it is curious that the "regulators" are interested in fair play, however, I never heard any interest in this concern in mergers and consolidations of the past few years. It should be interesting further to see what criteria they use to judge this fairness!




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