The 2 health systems offer a similar experience in dimensions — in 2016 Dignity reported $12.9 billion in revenue, and Catholic Health Initiatives reported $15.5 billion — and might have a combined annual revenue of $28.4 billion.
The mixture, likely to be finished in the 2nd 1 / 2 of 2018, would produce a health system with 139 hospitals and 700 care centers in 28 states, and rehearse 159,000 workers. Its corporate headquarters could be in Chicago. The offer is susceptible to federal, condition and church approval.
In comparison, at Kaiser Permanente, the nation’s largest nonprofit integrated health system, 2016 operating revenue was $64.6 billion. That figure, however, includes revenue from Kaiser health plans and hospital care. Kaiser doesn’t make public the financial figures because of its hospital revenue alone.
Chief executive officer Lloyd Dean, proven in the Dignity Health headquarters in Bay Area, could be co-Chief executive officer from the large new health system created through the planned merger of Dignity Health insurance and Catholic Health Initiatives of Colorado.
“We anticipate an amazing chance to grow each organization’s guidelines to reply to the evolving healthcare atmosphere and deliver high-quality, cost-effective care,” Dean stated inside a statement.
Dignity Chief executive officer Lloyd Dean and Catholic Health Initiatives Chief executive officer Kevin Lofton would function as co-CEOs from the new system, whose name has not yet been selected. Meanwhile, all existing medical facilities continues operating under their particular Dignity and CHI names. There aren’t any current intends to close any facilities.
The suggested merger is easily the most recent illustration of consolidation within the healthcare sector, that has been increasing for quite some time — prompting worry that less competition means greater prices and less selections for consumers. The 87 U.S. hospital acquisitions and mergers which were announced throughout the first nine several weeks of 2017 take presctiption track to exceed the 102 such deals which were finished in 2016, based on data published by the management talking to firm Kaufman Hall.
San Francisco’s Dignity Health intends to merge with Catholic Health Initiatives of Colorado inside a deal that will create among the nation’s largest nonprofit health systems by revenue, the organizations announced Thursday.