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Ascension first proposed promoting roughly half of its Illinois portfolio to Prime in July.
The deal comes amid two years of steep monetary losses for Ascension — the hospital operator posted a $1.1 billion web loss in 2024 and a $2.7 billion web loss in 2023.
Though the transaction continues to be topic to further critiques, together with by the Archdiocese of Chicago, Tuesday’s approval from Illinois’ Well being Services and Providers Evaluate Board (HFSRB) represents a significant step towards closing.
A spokesperson for Ascension stated the system was grateful for the board’s “unanimous determination,” including the sale will “protect jobs and guarantee wanted healthcare entry throughout Chicagoland.”
Below the deal, Prime will purchase Ascension Holy Household, Ascension Mercy, Ascension St. Francis, Ascension Resurrection, Ascension St. Elizabeth, Ascension St. Mary hospitals in Kankakee and Chicago and Ascension St. Joseph hospitals in Joliet and Elgin.
Seven of the hospitals are set to change into for-profit, in line with paperwork filed to the HFSRB. St. Francis and St. Mary will stay nonprofit amenities.
Prime has proposed closing St. Elizabeth, noting that in 2023 the hospital day by day census confirmed a median of 16.9 sufferers — lower than half the power’s capability. Prime additionally argues that with Ascension St. Mary-Chicago “roughly 1.5 blocks away” the closure would have minimal affect on sufferers’ entry to care.
Ascension instructed Healthcare Dive that it helps the closure and had been within the technique of consolidating companies between Ascension St. Elizabeth and St. Mary previous to Prime searching for to buy the hospital.
Prime at the moment operates 44 hospitals and lots of of outpatient areas in 14 states. The system says it has a monitor document of high quality and security, in addition to the “distinctive capacity to remodel financially struggling hospitals.”
Ascension executives lauded the well being system because the “greatest steward” for Ascension hospitals throughout a public listening to in September, and famous they chose Prime after conducting in depth due diligence.
Nonetheless, not everybody is worked up about having Prime — which has by no means operated a hospital in Illinois — take over the amenities. It’s the third time possession has reshuffled in ten years, with earlier house owners together with Presence Well being and Amita Well being.
This fall, the Evanston Spherical Desk reported some Illinois residents pressed Prime executives at city halls about whether or not they have been devoted to affected person care or income. A labor union representing Ascension’s nurses additionally wrote to the HFSRB to induce them in opposition to approving the deal.
Bradley Van Waus, Ascension division director for Nationwide Nurses United, requested the board to think about Prime’s historical past or lawsuits in addition to alleged sample of service cuts and closures in making their determination.
The union additionally cited Prime’s determination to shut 5 maternity wards in California over the past decade as a possible bellwether for the Chicago space. Final 12 months, Prime’s Los Angeles-based Centinela Medical Middle closed its maternity ward regardless of having a ten% common five-year working margin, in line with the union.
“Prime’s deal with boosting income lies behind drastic cuts, or the disappearance altogether, of essential however unprofitable healthcare, significantly impacting among the most susceptible communities,” Van Waus wrote.
Prime has been accused of partaking in Medicare fraud and conducting kickback schemes. Its most up-to-date settlements occurred in 2018.
In a press release, John Kniery, an administrator for the HFSRB, stood by the board’s approval.
“The Board’s in depth questioning of the general transaction between Prime and Ascension speaks for itself,” he stated. “Prime offered a complete presentation to the Board. Coupled with their response to the Board questioning — particularly about previous classes discovered and practices — they demonstrated they’re match, keen, and in a position to enter Illinois and take part within the proposed components of our healthcare supply system.”
