In a major shakeup of the Illinois healthcare landscape, Prime Healthcare has announced plans to acquire nine hospitals from Ascension, marking the California-based company's first foray into the state. The deal, which also includes several post-acute care and senior living facilities, represents Prime's largest acquisition to date and signals a significant shift in the ownership of key medical centers across Illinois.
The agreement, announced on Thursday, will see Prime Healthcare take control of nine Ascension hospitals, including the prominent Ascension Resurrection facility in Chicago. While the full financial terms were not disclosed, Prime has committed to investing $250 million to upgrade the acquired facilities, technology, and systems. This substantial investment underscores Prime's commitment to enhancing healthcare infrastructure and services in its new market.
The transaction is expected to close in the first quarter of 2025, subject to regulatory approvals. Until then, Prime and the Ascension facilities will continue to operate independently. This transition period will allow both organizations to prepare for the ownership change while maintaining continuity of care for patients.
For Ascension, the sale represents a strategic divestment of assets in Illinois. The Catholic non-profit health system, which operates in 19 states and the District of Columbia, has not commented on its reasons for selling these particular facilities. However, the move aligns with broader trends in the healthcare industry, where systems are increasingly reevaluating their portfolios and focusing on core markets.
Prime Healthcare, founded in 2001, has built a reputation for acquiring and turning around struggling hospitals. With this acquisition, the company will significantly expand its footprint, adding to its existing network of 45 hospitals across 14 states. The move into Illinois represents a major geographic expansion for Prime and positions the company as a key player in the state's healthcare market.
The impact of this acquisition on patients and staff remains to be seen. Prime has stated its commitment to maintaining quality care and investing in improvements, but such large-scale ownership changes can often lead to shifts in operational practices and corporate culture. Employees of the affected facilities will be watching closely to see how the transition unfolds and what changes may come under new management.
As the healthcare landscape continues to evolve, deals like this highlight the ongoing consolidation and realignment within the industry. The entry of Prime Healthcare into the Illinois market could potentially shake up competition and lead to further changes in the state's healthcare ecosystem. Patients, healthcare workers, and industry observers will be keenly watching how this acquisition plays out and what it means for the future of healthcare delivery in Illinois.
