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California DOJ approves CHI-Dignity merger, with conditions

The California Department of Justice conditionally approved the proposed merger of Englewood, Colo.-based Catholic Health Initiatives and San Francisco-based Dignity Health on Nov. 21.

Here are five things to know:

1. Under the California Justice Department's conditions, the combined system, called CommonSpirit Health, is required to maintain emergency services and women's healthcare services for 10 years.

2. To make any changes to emergency or women's healthcare services during years six through 10, CommonSpirit will be required to notify the Justice Department to determine how the changes will affect the community.

3. CommonSpirit is also required to allocate $20 million over six fiscal years to create and implement a Homeless Health Initiative to support services for patients experiencing homelessness.

4. Starting in 2019, CommonSpirit's California hospitals are required to alter their financial assistance policies to offer a 100 percent discount to patients earning up to 250 percent of the federal poverty level.

5. CHI and Dignity signed a definitive agreement to merge in December 2017, and the organizations expect to complete the transaction by the end of this year. The new $28.4 billion health system will include more than 700 care sites and 139 hospitals.

More articles on healthcare industry transactions:

CHS to divest 4 hospitals, exit South Carolina
LifePoint merges with RCCH, goes private
HCA merges 2 Florida hospitals

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