US-based health system Prime Healthcare has signed an asset purchase agreement with Ascension to acquire the latter’s hospitals and care sites in Illinois.
The agreement includes nine Ascension hospitals, related physician practices, four post-acute care facilities, and senior living centres.
The sale is anticipated to be finalised in Q1 2025, pending standard regulatory approvals.
Until the sale is finalised, Prime Healthcare and the Ascension Illinois facilities will operate independently. A consulting agreement between the two organisations will ensure stability and maintain patient care during this period.
As part of the agreement, Prime will invest $250m in upgrading facilities, making capital improvements, and enhancing technology and systems.
Additionally, the health system has committed to offering employment to nearly all current staff members.
The organisation will maintain and expand services based on community needs.
Prime Healthcare president and chief medical officer Sunny Bhatia said: “Our agreement with Ascension reflects our decades-long mission of saving, improving and investing in community hospitals and we are excited to bring these Ascension Illinois facilities into our Prime Healthcare family, preserving our shared values and mutual commitment to patient-centred care.
“Like Ascension, Prime Healthcare has a strong tradition of ensuring health equity and social responsibility.”
The acquisition is said to be the largest in Prime Healthcare’s history and the Prime Healthcare Foundation.
Prime Healthcare’s national health system currently operates 44 hospitals and over 300 outpatient locations across 14 states. The firm also has facilities in New York/ New Jersey and Los Angeles.
The transaction with Ascension Illinois will help the American health system to advance health equity and deliver clinical care.
Ascension selected Prime to oversee its hospitals and care sites after a due diligence process, an assessment of values compatibility, and an evaluation of ethical considerations.
Ascension Illinois CEO and president Polly Davenport said: “Ascension Illinois has been committed to our Mission of serving all persons, with special attention to those who are most vulnerable.
“Prime Healthcare’s Mission and commitment to clinical excellence and health equity will carry on this legacy, ensuring that the greater Chicago area has sustainable, quality healthcare access long into the future.”
