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CHI Looks to Acquire Sylvania Franciscan Health

Sylvania Franciscan Health, a seven-hospital system based in Toledo, Ohio, has signed a letter of intent to join Catholic Health Initiatives.

The two health systems will now undergo further due diligence, with the expectation of a definitive agreement by this fall. The transaction will also require approval from state, federal and Catholic officials. Financial terms of the deal were not disclosed.

CHI, based in Englewood, Colo., currently operates 89 acute-care hospitals. Sylvania Franciscan is comprised of two health systems: St. Joseph Health System in Bryan, Texas, and Trinity Health System in Steubenville, Ohio.

In a news release, Sylvania Franciscan CEO Jim Pope said the system was in a strong position, but healthcare reform is requiring providers "to offer integrated systems of care for specific geographical populations."

According to Sylvania Franciscan's most recent financial statements, profitability was slim. In the quarter ended March 31, 2014, the system posted a 0.7 percent operating margin and a -2.3 percent total margin. In fiscal year 2012, its most recent full-year financials, Sylvania Franciscan posted $617.7 million of total revenue and $3.2 million of operating profit, resulting in a 0.5 percent operating margin.

More Articles on Hospital Transactions:
Rhode Island Approves Transaction Between CharterCare, Prospect
CHS Calls Off Bert Fish Merger Deal
Massachusetts Approves Partners' Acquisitions, But With Conditions

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