CHAN Healthcare — the health care auditing and advisory business owned by Ascension and Catholic Health Initiatives — has signed a "letter of intent to combine resources" with the public accounting firm Crowe Horwath.
Clayton, Mo.-based CHAN focuses on providing internal audit services to health care businesses. The new structure would give Chicago-based Crowe Horwath a majority interest in CHAN, while Ascension and CHI would maintain a minority interest and continue their client relationship with CHAN, according to a statement from Crowe Horwath's Chief Executive Chuck Allen. He said on a consolidated basis, the move would bring about 300 employees and $55 million of annual revenue to Crowe Horwath. "We are looking forward to the association with these two partners and the continuing expansion of our market presence in health care," he said.
Anthony R. Tersigni, president and chief executive of St. Louis-based Ascension, said in a statement that the partnership will create the industry's leading provider of internal audit and advisory services. Kevin Lofton, president and chief executive of Englewood, Colo.-based CHI, said, "Joining with one of the nation's largest public accounting firms makes sound business sense in today's changing health care environment."
CHAN President and Chief Executive David LeMoine will depart the organization after the deal closes this fall, said Ascension spokesperson Gary E. Fendler.CHAN intends to retain the remainder of its executive management team, according to the statement about the proposed transaction released Aug. 13.
The transaction is pending completion of due diligence and a definitive agreement. Financial details of the transaction have not been disclosed. CHAN will remain a limited liability company whose earnings pass to its members.