St. Louis-based Ascension plans to sell nine of its Illinois hospitals as well as a network of affiliated facilities to Ontario, California-based Prime Healthcare.
The two systems have entered into an asset purchase agreement under which Prime Healthcare would assume ownership of those Ascension hospitals as well as of affiliated physician practices, post-acute care sites and eldercare campuses. The two systems are not disclosing the purchase price.
The acquisition includes:
- Ascension Holy Family hospital in Des Plaines.
- Ascension Mercy hospital and Fox Knoll Village eldercare campus in Aurora.
- Ascension Resurrection hospital in Chicago.
- Ascension Saint Francis hospital in Evanston.
- Ascension Saint Joseph hospital and Villa Franciscan Place eldercare campus in Joliet.
- Ascension Saint Joseph hospital in Elgin.
- Ascension Saint Mary hospital and Heritage Village and Heritage Lodge eldercare campuses in Kankakee.
- Ascension Saint Mary and Saint Elizabeth hospitals in Chicago.
- Resurrection Place eldercare campus in Park Ridge.
According to a release, this is the largest acquisition in Prime Healthcare's history.
Prime Healthcare is a health system that consists of 30 hospitals in Prime Healthcare Services, which is a tax-paying entity, and 14 hospital facilities in Prime Healthcare Foundation, which is a not-for-profit public charity. Prime Healthcare Services will acquire eight of the Ascension sites, and those sites will become for-profit. Prime Healthcare Foundation will acquire one Ascension site, the Evanston hospital, which will remain nonprofit.
The release says Prime "has earned national recognition for its unique ability to transform financially struggling hospitals." Plans call for Prime to invest $250 million in capital improvements, technology investments and other upgrades at the Illinois facilities. Prime also plans to continue and expand services based on community need, continue charity care and community benefit programs, maintain the facilities' spiritual care policies, and employ substantially all current associates.
Ascension and Prime expect to close the deal in the first quarter of 2025, pending regulatory and canonical approvals.
Currently, Prime has 44 hospitals and more than 300 outpatient locations in 14 states. Ascension has 140 hospitals and a network of outpatient sites in 19 states and the District of Columbia.
Prime has acquired multiple Catholic health care facilities in the past, including:
- St. Francis Medical Center in Lynwood, California, in 2020.
- Carondelet Health's St. Joseph Medical Center in Kansas City, Missouri, and St. Mary's Medical Center in Blue Springs, Missouri, from Ascension in 2015.
- Saint Clare's Health System of Denville, New Jersey, from Catholic Health Initiatives (now, CommonSpirit Health) in 2015.
- St. Joseph Mercy Port Huron in Port Huron, Michigan, from Trinity Health in 2015.
- Saint Michael's Medical Center in Newark, New Jersey, in 2016.
- Mercy Suburban Hospital from Mercy Health System of Conshohocken, Pennsylvania, in 2016.
- St. Mary's Hospital in Passaic, New Jersey, in 2014.
- Providence Medical Center in Kansas City, Kansas, and Saint John Hospital in Leavenworth, Kansas, from SCL Health System (now Intermountain Health) in 2013.
- Saint Mary's Regional Medical Center of Reno, Nevada, from Dignity Health (now, CommonSpirit Health) in 2012.
According to information Prime has provided to Catholic Health World, in its acquisitions of Catholic health facilities, the system has respected "the traditions of these historic facilities while promoting the spiritual care and well-being of all members of the community, especially those that are most vulnerable."