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CHI, Dignity Health reportedly in final stages of due diligence for proposed affiliation

Englewood, Colo.-based Catholic Health Initiatives officials said the health system is conducting the final stages of the due diligence process to align with San Francisco-based Dignity Health.

CHI officials said the organizations will share additional information "once it becomes available," according to CHI's fourth quarter annual report for fiscal year 2017 ending June 30.

However, CHI officials said they can give no assurance the transaction will definitively occur.

If the deal is approved, the combined entity would accumulate approximately $28.1 billion in total operating revenue and operate 140 hospitals nationwide, according to data highlighted in the report. The transaction would place the merged entity roughly on par with St. Louis-based Ascension, the nation's largest Catholic health system, which operates 141 hospitals and reported a total operating revenue of $17.1 billion for the nine months ending March 31 for fiscal year 2017.

The health systems signed a nonbinding letter of agreement to explore an affiliation in October 2016.

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