Memorial Signs Letter of Intent with Catholic Health Initiatives
Today Memorial Health System of East Texas (Memorial) and Catholic Health Initiatives (CHI), Englewood, CO, signed a non-binding letter of intent (LOI) to transfer ownership of Memorial to CHI. The health care systems will negotiate the terms of the agreement with the expectation of reaching an agreement by spring 2014.
Memorial recognizes that changes in the national health care landscape will make it increasingly challenging to remain a stand-alone health care system. Strengthening access to health care in East Texas is a key objective of the proposed transaction.
“This proposed transaction will significantly strengthen and expand the 65-year mission of Memorial through the strong commitment and resources of CHI, a highly respected national health care organization and a very successful faith-based ministry,” said Jack Sweeny, chairman of the board for Memorial Health System of East Texas.
Likewise, Memorial President & CEO Gary Looper said, “The additional affiliations with CHI St. Luke’s Health, Baylor College of Medicine and the Texas Heart® Institute will add a very exciting regional dimension to the services that Memorial can offer the communities it serves in East Texas. CHI has a very clear vision for its new mission in Texas, and Memorial will be an integral part of that vision.”
“The addition of Memorial to CHI’s Texas system, following the affiliation of CHI St. Luke’s Health last year, honors our deeply held commitment to build strong relationships of lasting value to better serve the people of Texas,” said CHI President and CEO Kevin E. Lofton. “In becoming part of CHI, Memorial also will benefit from CHI’s overall scale and reach as well as the exciting new ventures that CHI St. Luke’s Health is undertaking with the Baylor College of Medicine and the Texas Heart® Institute in Houston.”
The transfer will require approvals from the Memorial Health System of East Texas Board of Directors and the CHI Board of Stewardship Trustees as well as federal, state and Church authorities.
About Catholic Health Initiatives: Catholic Health Initiatives, a nonprofit, faith-based health system formed in 1996 through the consolidation of four Catholic health systems, expresses its mission each day by creating and nurturing healthy communities in the hundreds of sites across the nation where it provides care. One of the nation’s largest health systems, Englewood, Colo.-based CHI operates in 18 states and comprises 87 hospitals, including four academic medical centers and teaching hospitals and 24 critical-access facilities; community health-services organizations; accredited nursing colleges; home-health agencies; and other facilities that span the inpatient and outpatient continuum of care. In fiscal year 2013, CHI provided $762 million in charity care and community benefit, including services for the poor, free clinics, education and research. Learn more at http://www.catholichealthinitiatives.com.
Posted January 9, 2014