Dive Brief:
- Tennessee-based Capella Healthcare will acquire St. Joseph Regional Medical Center (Lewiston, Idaho), which has been part of Ascension Health since 2002.
- Capella has also signed a letter of intent to purchase another Ascension facility, Lourdes Health Network in Pasco, Washington.
- Terms of the transactions remain confidential and won't be released until a final agreement has been reached.
Dive Insight:
Lourdes has been looking for a new home for months, according to the Tri-City Herald. As Ascension shifts to "regional clinically integrated systems of care," focusing on large metro areas with a high density of hospitals and other care environments, Lourdes' small, independent facility wasn't a good fit, according to a Lourdes spokesperson.
Privately-held Capella Healthcare owns or operates 13 acute care and specialty hospitals in six states.
"Capella Healthcare already has a presence in the Pacific Northwest, and we're confident that this change in ownership would give Lourdes and St. Joseph the ability to serve the Pasco and Lewiston communities well into the future," Ascension CEO Robert Henkel said in a statement.
"The healthcare landscape is changing rapidly in this country. In this environment, it is important for St. Joseph to pursue this agreement, which reaffirms our commitment to this community," Dr. Michael Rooney, interim CEO and president of St. Joseph Regional Medical Center, said in a statement.