Catholic Health Initiatives, Englewood, Colo., and Dignity Health, San Francisco, have signed a nonbinding letter of intent to explore aligning the two organizations.
The two organizations seek to strengthen their role in the evolving health care system through increased access and enhanced clinical care, according to a joint news release.
The leaders of the respective organizations expect an alignment to improve the work of both. "The potential to align the strengths of these two organizations will allow us to play a far more significant role in transforming health care in this country," said Kevin Lofton, CEO of CHI, in the release.
Lloyd Dean, president and CEO of Dignity, said, “Through a stronger strategic and financial foundation, an aligned ministry would accelerate our ability to advance our healing mission into the future.”
The release notes that CHI “brings a diverse geographic footprint with proven clinical service lines and home-health capabilities,” while Dignity “has a proven operating model that has successfully scaled enterprisewide initiatives to ensure consistent practices across the system.”
There is no geographic overlap of acute-care facilities. CHI owned, leased or sponsored 93 hospitals and contract managed four across 14 states, according to the forthcoming 2017 AHA Guide. It has 12,437 staffed beds, according to the guide, which is based on the AHA Annual Survey of Hospitals.
Dignity Health, formerly an all-Catholic hospital system, owned, leased or sponsored 36 hospitals in three states for a total of 7,960 beds, according to the AHA Guide.
The announcement follows last month’s news that the two organizations were collaborating on a precision medicine effort called the Precision Medicine Alliance LLC.