Health Law Matters

Catholic Health Initiatives and Dignity Health Finalize Merger

Highlights from the Week in Health Law

  • After more than two years of wrangling, Catholic Health Initiatives and Dignity Health have finalized their merger of the two nonprofit systems. The combined systems will now operate as “CommonSpirit Health,” and will be based in Chicago.
  • CommonSpirit now ranks as the nation’s second-largest system based on total hospitals, and second based on total revenue. In a somewhat unusual move, the chief executive officers of the two prior organizations, Kevin Lofton (CHI) and Lloyd Dean (Dignity), will now both share that role.
  • Lofton has indicated telehealth will be a priority for the system to expand its access to rural patients, and that its home care division will help extend that reach. “One of the things we bring to the table as an organization is the large footprint, but not so much from a size standpoint, more from the diversity of our ministries,” he indicated. 
  • The system plans to save money by eliminating redundancies in information technology and workforce. It will select the next level of executives over the next few weeks, and then begin to focus on integration strategies and expansion opportunities.

More trending Health Law topics this week:

  • Two Texas Sentencings Send Physicians to Prison for Home Health Fraud

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James (Jim) A. Dietz is a Member at FBT who provides an array of legal services to hospitals, physicians, long-term care providers, diagnostic facilities, and others across the spectrum of patient care.