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Dignity Health announces merger with Colorado-based Catholic Health Initiatives

San Francisco-based Dignity Health and Colorado-based Catholic Health Initiatives(CHI) announced merger that would create one of the nation's largest not-for-profit health systems.

Posted: Dec 7, 2017 7:27 PM

San Francisco-based Dignity Health and Colorado-based Catholic Health Initiatives(CHI) announced a merger Thursday, that if approved would create one of the nation's largest not-for-profit health systems by revenue.

“It's our pleasure to share with you that Catholic Health initiatives and Dignity Health have signed a definitive agreement to combine our ministries and build a new Catholic health system,” CHI CEO Kevin Lofton said in a video posted to Facebook.

Thursday's announcement comes after more than a year of discussions between the two health care organizations.

It's a move Lofton says will greatly improve the organizations' ability to provide quality healthcare.

The new health system would include 139 hospitals across 28 states and a combined revenue of nearly 29 billion dollars with more than 159 thousand employees.

“Together, we will have a stronger operational and financial foundation to transform our organizations and support the people and communities we serve,” Dignity Health CEO Lloyd Dean said in a video posted to Facebook.

Dignity Health operates three hospitals located throughout the North State including Mercy Medical Center Redding, Mercy Medical Center Mt. Shasta and St. Elizabeth Community Hospital in Red Bluff.

We reached out to local hospital representatives to learn what effect, if any, the merger will have on the local hospitals and their employees.

But they were unable to comment at this time.

But a spokesperson for the California Nurses Association, the largest union in the dignity system, says they remain optimistic.

They say they just negotiated a four-year contract with Dignity Health earlier this year, and they're glad to hear no hospitals will be closed as a result of the merger.

The merger which is still subject to federal, state and church approval, is expected to go through in the second half of 2018.

The new organization will also choose a new name at that time and will be headquartered in Chicago.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 807451

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