Illinois regulators approve $375M sale of 9 hospitals

Prime Healthcare’s planned acquisition of several Ascension hospitals in Illinois has cleared an important hurdle.

Illinois regulators have signed off on Prime Healthcare's planned purchase of nine hospitals in a deal with Ascension.

The Illinois Health Facilities and Services Review Board voted Tuesday to approve Prime’s plan to purchase nine Illinois hospitals from Ascension, The Chicago Tribune and other local media reported.

Prime is planning to purchase the facilities in a $375 million transaction, according to Illinois state documents.

When the deal is finalized, Prime Healthcare will expand its footprint to Chicago, the nation’s third largest metropolitan area. A for-profit system, Prime also operates facilities in New York and Los Angeles. The deal represents Prime’s largest transaction in the company’s history.

Ascension, the Catholic hospital system, has been selling some of its properties recently.

Prime Healthcare announced its plans to acquire Ascension’s hospitals in July. The for-profit system based in California said it would invest $250 million to upgrade the hospitals and improve technology in the facilities.

The Archdiocese of Chicago must sign off on the deal, the National Catholic Reporter previously reported.

Under the deal, Prime Healthcare would acquire these Ascension Illinois hospitals: Ascension Holy Family (Des Plaines); Ascension Mercy (Aurora); Ascension Resurrection (Chicago); Ascension Saint Francis (Evanston); Ascension Saint Joseph (Joliet); Ascension Saint Joseph (Elgin); Ascension Saint Mary (Kankakee); and Ascension Saint Mary and Saint Elizabeth (Chicago). The deal also includes two ambulatory surgery centers.

The deal also includes two ambulatory surgery centers. Prime would also acquire associated physician practices.

When the transaction was first announced, Polly Davenport, president and CEO of Ascension Illinois, said the deal will ensure “that the greater Chicago area has sustainable, quality healthcare access long into the future.”

Based in Ontario, California, Prime Healthcare operates 44 hospitals and more than 300 outpatient locations in 14 states.

Ascension operates 118 hospitals in 17 states and Washington, D.C. But the system has finalized other deals to sell some of its hospitals this year.

Last month, the University of Alabama at Birmingham Health System Authority completed the acquisition of five Ascension hospitals in Alabama in a $450 million transaction.

Ascension also announced a deal in the spring to sell three hospitals to MyMichigan Health. In August, MyMichigan Health completed the acquisition of the facilities.

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