Two leading nonprofit healthcare systems – Catholic Health Initiatives and Dignity Health – have signed a non-binding letter of intent to explore aligning their organizations and expanding their mission of service in communities across the nation.
The boards and sponsors of the two health systems are evaluating the potential alignment to strengthen their leadership role in transforming health care through increased access and enhanced clinical excellence.
"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 E. Lofton, chief executive officer of Catholic Health Initiatives. "Together, we could enhance our shared ministry as the health industry transitions to a system that rewards the quality and cost-effectiveness of care."
“Health care is at a turning point in our nation,” said Lloyd H. Dean, president/ chief executive officer of Dignity Health. “Through a stronger strategic and financial foundation, an aligned ministry would accelerate our ability to advance our healing mission into the future.”
The letter of intent follows last month’s announcement that the two systems formed a partnership called the Precision Medicine Alliance LLC, which will create the largest community-based precision medicine program in the country. The organizations complement one another in many other important ways. CHI brings a diverse geographic footprint with proven clinical service lines and home-health capabilities, as well as successful partnerships in research and education.
Dignity Health has a proven operating model that has successfully scaled enterprise-wide initiatives to ensure consistent practices across the system, and is well known for its work with innovative, diversified care-delivery partnerships. There is no geographical overlap of acute care facilities.
Both systems include Catholic and other-than-Catholic health care affiliates that share a commitment to care for all, including those who are poor and underserved.
It is anticipated that discussions will continue through early 2017.