AdventHealth and Ascension Close Chicago-based Amita Healthcare Joint Venture


Photo: Bjarte Rettedal / Getty Images

AdventHealth and Ascension announced a joint decision to unwind their six-year Amita Health partnership serving the Chicago area.

After the transition, AdventHealth and Ascension will operate their individual hospitals and related health facilities in the Chicago area.

“After working closely together for nearly seven years, Adventist Health System Sunbelt Healthcare Corporation d / b / a AdventHealth and Ascension have decided to terminate their partnership with AMITA Health, the joint operating company that serves healthcare needs of residents of the greater Chicago area ”according to an Advent health statement.

There were no specific details on when the breakup was expected to be finalized and no further details on the reason for the dissolution of the partnership.

The Chicago Tribune reported that Amita spokeswoman Olga Solares said it was not clear whether jobs or services would be affected by the decision, although the joint statement released said it was not. there would be “no disruption” in patient care.

The partnership between Adventist Midwest Health and Ascension’s Alexian Brothers Health System was expanded in 2018, when 10 Presence Health hospitals joined Ascension.

Amita is one of the largest healthcare systems in Illinois, with 15 acute care hospitals and four specialty hospitals. The four AdventHealth area hospitals and associated health facilities will continue to be controlled by AdventHealth.

Amita Health President and CEO Keith Parrott will lead Ascension Hospitals in Illinois, while Amita’s current Executive Vice President and COO Thor Thordarson will lead AdventHealth Hospitals in Illinois.

The outcome would allow both healthcare providers to better meet the “changing needs and expectations” of their respective patients in a “rapidly changing” healthcare market, the companies said.

Nationally, Ascension operates 142 hospitals in 19 states and Washington, DC, while AdventHealth operates facilities in nine states in the United States, including nearly 50 hospitals.

WHY IT IS IMPORTANT

It is rare news to have decoupling providers.

It comes amid continued consolidation of healthcare providers as hospitals seek strategic partners to tackle the financial impacts of the pandemic and skyrocketing healthcare costs.

THE BIGGEST TREND

Small vendors, who felt the pandemic was negatively impacting their financial performance, will likely pursue merger and acquisition strategies to access clinical, strategic and financial resources, according to an April report from Moody’s Investors Service. .

A Kaufman Hall report released earlier this month indicated that M&A activity in the third quarter of 2021 totaled seven deals involving 20 hospitals, with total revenue processed for the quarter exceeding $ 5 billion.

“Healthcare systems are increasingly seeking a transformative impact from M&A activity – not just the acquisition of another facility, but the addition of new capacity or access to new markets,” indicates the report.

ON THE RECORD

“AdventHealth and Ascension will begin the process of unwinding the partnership in a manner that best meets the needs of the community,” said a statement from the two companies. “AdventHealth and Ascension have a strong relationship and are united to ensure that Chicagoans have access to the best health care possible.”

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