Dignity Health and Catholic Health Initiatives to Combine to Form New System

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Dignity Health and Catholic Health Initiatives to Combine to Form New System

Catholic Health Initiatives (CHI) and Dignity Health have signed a definitive agreement to combine ministries and create a new nonprofit Catholic health system. The combination brings together two leading health systems, allowing the organizations to expand their mission of service and create a healthier future for people and communities across 28 states.

The new health system will build a stronger operational and financial foundation to expand access to quality care, build upon complementary resources and capabilities, and reinvest in critical areas to accelerate improvements in care delivery. It will include more than 700 care sites and 139 hospitals, offering people and communities access to quality care delivered by approximately 159,000 employees and more than 25,000 physicians and other advanced practice clinicians. The organizations are geographically complementary with no overlap across hospital service areas.

The new organization will be led by an office of the CEO. Lloyd Dean, president and CEO of Dignity Health, and Kevin E. Lofton, CEO of CHI, will both serve as CEOs, each with specific and independent responsibilities and decision-making authority. The governing board for the new organization – the Board of Stewardship Trustees – will include six members from each legacy board and the two CEOs. The new organization plans to establish its corporate headquarters in Chicago and operate under a new name that will be chosen in the second half of 2018. Local facilities will continue operating under their current names.

Dignity Health’s Board of Directors and Sponsorship Council and CHI’s Board of Stewardship Trustees have approved the combination. The deal is anticipated to close in the second half of 2018 and is subject to federal, state, and church approvals.