Sale of 8 Illinois hospitals finalized

After several months of work to seal the deal, Prime Healthcare has established a presence in the Windy City.

Prime Healthcare has completed its acquisition of eight Illinois hospitals from Ascension. Sunny Bhatia, MD, president and chief medical officer of Prime Healthcare, has said the system will invest to improve the facilities.

Prime Healthcare, the for-profit system based in California, said it has completed its deal with Ascension to purchase eight hospitals in the Chicago area. As part of the transaction, Prime also is acquiring four senior living and post-acute facilities and a host of physician practices. The deal also includes two ambulatory surgery centers.

When Prime Healthcare announced the plans to acquire the Ascension facilities last July, the system said it was looking to secure a foothold in America’s third largest market. Prime purchased the facilities in a $375 million transaction, according to Illinois state documents.

With the deal complete, Prime Healthcare now operates 51 hospitals and more than 360 outpatient locations. The system boasts nearly 57,000 employees and affiliated doctors.

The Illinois Health Facilities and Services Review Board signed off on the transaction in December, and the Archdiocese of Chicago and the Vatican also gave their approval, the system said. These hospitals “will continue an affiliation with the Catholic Church,” Prime said in a news release.

Prime Healthcare said it would invest $250 million to upgrade the hospitals and improve technology in the facilities. Sunny Bhatia, MD, president and chief medical officer of Prime Healthcare, said in a statement that the system has shown it can improve the hospitals it adds to the system.

“For nearly two decades, we have uniquely revitalized hospitals, ensuring they not only survive but thrive—delivering compassionate, evidence-based care that communities can trust,” Bhatia said. “This milestone is a testament to the dedication of our physicians, nurses, and staff, whose unwavering commitment makes our mission possible. With deep gratitude, we embrace this opportunity to improve wellness for generations to come.”

Prime has pledged to maintain the charity care programs at the hospitals and ensure that vulnerable communities get the care that they need.

Polly Davenport, CEO of Ascension’s Illinois Market, said the deal would preserve high-quality care at the hospitals and other facilities in the Chicago area.

“We all chose healthcare to serve our communities, and I believe the transition to Prime Healthcare for these facilities remains the best possible action for the communities we are privileged to serve and the patients cared for by the dedicated team of associates and physicians,” Davenport said in a statement.

For Ascension, the system marks another step in reducing the size of its footprint. The Catholic health system remains one of the nation’s largest nonprofit systems, but it has sold some of its hospitals over the past few years.

In June, Ascension announced a deal to sell five of its hospitals in Alabama to the University of Alabama Health System in a $450 million deal. Ascension also announced a deal last spring to sell three hospitals to MyMichigan Health, and that deal was completed last year.

Ascension operates 105 hospitals in 16 states and Washington, D.C., and the health system has an ownership interest in 26 other hospitals.

Under the deal, Prime Healthcare has acquired 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.

The deal also includes the former Saint Elizabeth Hospital in Chicago, a facility which recently closed. Prime has said it would repurpose the facility to offer health services at that location.

Deacon Gerald Keenan of Archdiocese of Chicago offered a statement of confidence in the completion of the deal.

“Prime Healthcare’s acquisition of these hospitals will help ensure that our Illinois communities receive the treatment and services they need in a setting that upholds the dignity of the human person,” he said in a statement. “Together, we look forward to maintaining a healthcare environment that not only heals the body but also nourishes the soul.”

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