Ascension, Providence St. Joseph halt merger talks
Discussions to create the largest hospital system in the country by combining Ascension and Providence St. Joseph Health have ended, with the two companies deciding to focus on restructuring existing operations, according to the Wall Street Journal.
Ascension—already the largest nonprofit health system in the U.S.—had recently announced a new strategic direction as its operating margins have continued to shrink amid reduced reimbursements from insurers. The timing of that new initiative wouldn’t work with such a major merger, one source told WSJ.
Similarly, Providence St. Joseph Health is increasing its investments in care outside of hospitals, such as retail and ambulatory settings, after losing $225 million in 2016 and breaking even last year.
The two systems, if combined, would have controlled 204 hospitals with an annual revenue of $45.8 million, displacing HCA was the largest hospital operator in the U.S. Discussions could resume at some point, the sources said, but not anytime soon.
Read more at the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.