Alabama health system completes $450M deal to acquire 5 hospitals

A few months after announcing its plans, the University of Alabama at Birmingham Health System Authority has completed the acquisition of five Ascension hospitals in Alabama.

The University of Alabama at Birmingham Health System has acquired the Ascension St. Vincent’s Health System in central Alabama.

The University of Alabama at Birmingham announced Friday that it has finalized the deal to take ownership of the Ascension St. Vincent’s Health System in central Alabama. The university’s board of trustees approved the $450 million deal in June.

The hospitals and other associated healthcare locations now carry the brand of UAB St. Vincent’s.

UAB Health System CEO Dawn Bulgarella hailed the completion of the deal.

“We are grateful and excited for how well this acquisition has been received by patients, as well as the St. Vincent’s and UAB teams,” Bulgarella said in a statement. “I look forward to seeing how the combining of these two great health systems enhances patients’ access to a larger network of care, creates exciting opportunities for our people and makes Alabama’s healthcare system more sustainable.”

Ascension, a nonprofit Catholic system, operates more than 130 hospitals and more than three dozen senior facilities around the country. The system has been selling some of its hospitals and reducing the size of its footprint in the past few years.

With the deal, the UAB Health System now includes the former Ascension hospitals at Birmingham, Blount, Chilton, East and St. Clair. The UAB Health System also has acquired the One Nineteen Campus, the Trussville Freestanding Emergency Department, and the clinics and imaging centers that were part of Ascension Medical Group.

UAB Health System officials have said that no Ascension St. Vincent’s employees would lose their jobs in the deal.

In a statement Friday, Bulgarella said, “We look forward to investing in our people, facilities and systems to enhance the caregiver, associate and patient experience across UAB Medicine and UAB St. Vincent’s.”

Leaders with the UAB Health System and Ascension St. Vincent’s formed a team to ensure the integration of the hospitals into the health system proceeds smoothly. St. Vincent’s patients will continue to see their own providers, officials said.

“A significant amount of work and dialogue has gone into this effort, and Ascension has been a great partner throughout, demonstrating a shared commitment to a smooth transition for everyone we serve,” Bulgarella said.

Ray Watts, MD, president of the University of Alabama at Birmingham and the chairman of the UAB Health System board, said the system is focusing on patients and employees with the integration of the Ascension hospitals.

“As an Alabama-operated health system, we love, understand and meet the needs of our local communities, and we deeply respect Ascension St. Vincent’s caregivers’ and associates’ similar community- and mission-focused commitment,” Watts said in a statement.

The UAB Health system operates a network of 17 hospitals. The system’s acquisition of Ascension’s hospitals reflects the uptick in hospital merger activity recently, with academic health systems acquiring more community hospitals.

Meanwhile, Ascension continues to shed some of its facilities. In August, Ascension completed the sale of three hospitals in Michigan to MyMichigan Health. Ascension Michigan also has formed a new joint venture with Henry Ford Health to form a $10.5 billion organization; system officials say that deal is a partnership but not a merger or acquisition.

The UAB acquisition of the Ascension hospitals isn’t the only big health system acquisition in Alabama.

Orlando Health recently acquired majority ownership of five Alabama hospitals from Tenet Healthcare Corp. in a $910 million deal.

Tenet sold its 70% majority ownership interest in Brookwood Baptist Health in Birmingham, Alabama.

With the deal, Orlando Health acquired the hospitals and a host of other physician practices and healthcare locations. Tenet said Brookwood Baptist Health will remain a joint venture with Baptist Health System.

Orlando Health said it completed the deal with Tenet on Oct. 1.

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