Virginia Mason in acquisition talks with CommonSpirit’s CHI Franciscan

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Washington-based Virginia Mason is in acquisition talks with CHI Franciscan, a part of healthcare big CommonSpirit Well being.

Thursday, the 2 well being techniques introduced they signed an settlement to discover combining by the formation of a joint working firm.

“CHI Franciscan and Virginia Mason have partnered intently in recent times and thru this collaboration it has develop into clear there’s far more we will do collectively,” mentioned Ketul  Patel, CEO of CHI Franciscan and president of the Pacific Northwest Division at CommonSpirit Well being, in a press release. “We’re assured that in constructing the well being system of the long run, we are going to reimagine care supply within the Puget Sound area and past.”

RELATED: With completion of $29B CHI-Dignity Well being merger, CommonSpirit Well being emerges

The brand new well being system could be led by Patel and Gary Kapla, M.D., chairman and CEO of Virginia Mason, as co-CEOs. Every group would obtain an equal variety of board seats.

When CommonSpirit was fashioned by a $29 billion merger of Dignity Well being and Catholic Well being Initiatives in 2019, officers adopted an analogous mannequin with Dignity CEO Lloyd Dean and CHI CEO Kevin Lofton initially serving a co-chief executives for the newly fashioned CommonSpirit Well being earlier than Dean grew to become the only CEO earlier this month.

The mixed group would function 12 hospitals and greater than 250 websites of care, together with same-day surgical procedure facilities in addition to Benaroya Analysis Institute at Virginia Mason, Bailey-Boushay Home and the Virginia Mason Institute.

CHI Franciscan, a $2.5 billion well being system, has greater than 1,250 hospital beds. Virginia Mason has simply over 550 beds between two hospitals. CHI Franciscan and Virginia Mason would make use of greater than 21,000 workforce members and workers, together with practically 5,000 employed and affiliated suppliers.

RELATED: CommonSpirit Well being stories losses of $582M in first monetary report since merger

Officers mentioned the brand new group could be “agile and market-responsive, lowering waste and aligning throughout the system to all the time have the affected person’s finest curiosity in thoughts” with the objective of serving as a nationwide prototype of care.

CHI Franciscan and Virginia Mason have partnered in recent times in obstetrics and girls’s well being, in addition to radiation oncology.

Officers mentioned they plan to finalize the analysis and planning course of by the top of the 12 months.

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