Englewood-based Catholic Health Initiatives, which operates two hospitals in Colorado Springs, has completed its merger with San Francisco-based Dignity Health to form a nearly $30 billion health care giant spanning 21 states.
The combined nonprofit, called CommonSpirit Health, is based in Chicago and operates 142 hospitals and more than 500 other health care facilities nationwide with about 150,000 employees. With the merger, CommonSpirit co-owns Centennial-based Centura Health with AdventHealth and operates Penrose Hospital, St. Francis Medical Center and many other health care facilities in the Colorado Springs area, such as physician offices and urgent care centers.
The merger is expected to have no impact on Penrose-St. Francis Health Services, the holding company for Centura’s operations in Colorado Springs, said Chris Valentine, a Penrose-St. Francis spokesman. Catholic Health Initiatives and Dignity previously said local facilities and operations would retain their existing names after the merger.
“Our new organization will bring the expertise of a national health system to neighborhoods across the country,” said Kevin Lofton, who was Catholic Health Initiatives CEO and serves as one of two CEOs in CommonSpirit’s Office of the CEO. “We created CommonSpirit Health because in order to solve national health challenges, we need the breadth, scope and resources to make a nationwide impact.”
Catholic Health and Dignity agreed to the merger in December 2017 after signing a letter of intent 13 months earlier. The letter came just a month after the two Catholic hospital chains formed a joint venture called Precision Medical Alliance, which rolled out a precision oncology program last year in Colorado Springs. That program offers “advanced tumor profiling and targeted therapies” based on a patient’s genetic profile.
The merger deal came amid losses at Catholic Health Initiatives — more than $1.2 billion in the last three fiscal years. Dignity reported operating income of nearly $530 million last year after losing $130 in the previous two years.
Catholic Health Initiatives was formed in 1996 with the consolidation of four Catholic hospital systems and operated 101 hospitals in 18 states, employing more than 91,000 people and generating $15 billion in annual revenue. Dignity started in 1986 and operated 41 hospitals in 21 states, employing more than 60,000 people and generating $14 billion in annual revenue.
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