Prime Healthcare has agreed to acquire nine hospitals, as well as post-acute and senior living facilities, and associated physician practices from Ascension in Illinois, US.
Financial details of this asset purchase agreement remain undisclosed.
Once complete, this deal will be the largest ever made by Prime Healthcare and its supporting charity, the Prime Healthcare Foundation.
Prime Healthcare, known for transforming financially struggling hospitals, operates in 14 US states and has contributed over $12bn in community benefit and charity care since 2010.
Ascension is said to have chosen Prime Healthcare for selling its healthcare facilities and hospitals after thorough due diligence, a values compatibility assessment, and an ethics discernment process.
It will sell Ascension Resurrection in Chicago, Ascension Holy Family in Des Plaines, Ascension Mercy in Aurora, Ascension Saint Mary in Kankakee, Ascension Saint Mary and Saint Elizabeth Chicago, Ascension Saint Joseph in Joliet, Ascension Saint Francis in Evanston, and Ascension Saint Joseph in Elgin.
The sale also encompasses several post-acute and senior living facilities operated by Ascension Living, such as Resurrection Place, Park Ridge; Heritage Village and Heritage Lodge, Kankakee; Villa Franciscan Place, Joliet; and Fox Knoll Village, Aurora.
In addition, Prime Healthcare plans to invest $250m to facilitate capital improvements, facility upgrades, and technology investments, without incurring debt on the hospitals.
The organisation also agreed to employ most associates and will continue to expand services based on community needs while maintaining charity care and community benefit programmes.
The acquired hospitals and facilities will add to Prime Healthcare's existing network of 44 hospitals, over 300 outpatient sites, and approximately 45,000 employees and affiliated physicians.
This expansion will strengthen Prime Healthcare's presence in the third-largest metropolitan area in the US, alongside its facilities in the New York/New Jersey area and Los Angeles.
The transaction, which is pending regulatory approval, is expected to be finalised within the first quarter of next year.
Until then, Prime Healthcare and Ascension Illinois facilities will operate independently under a consulting agreement to ensure stability.
Prime Healthcare president and chief medical officer Sunny Bhatia said: “Like Ascension, Prime Healthcare has a strong tradition of ensuring health equity and social responsibility. This transaction will enable a continuation of this tradition and expand our dedication to compassionate care, clinical excellence, and service to patients and the greater Chicago community.”
