The UAB Health System is acquiring Ascension St. Vincent's hospitals and clinics for $450 million.
According to a press release, the University of Alabama System Board of Trustees unanimously approved the purchase, which includes all hospitals, freestanding emergency departments, imaging centers, facilities and clinics across Central Alabama.
"Patients will continue to have access to the healthcare services and providers they've come to trust, and ultimately gain access to a larger care network," UAB Health System CEO Dawn Bulgarella said. "UAB and St. Vincent's exist to improve lives, and that purpose will drive our actions in the coming months and beyond."
Bulgarella has overseen the UAB/Ascension St. Vincent's Alliance, established in 2020. UAB has implemented tele-health care services in several Ascension-owned facilities and clinics.
Over the past five years, Ascension has been selling hospitals, interests in laboratory operations, and a health insurance group. Providence Hospital in Mobile was bought by the USA Health System last year after Ascension suffered a $3 billion operating loss.
It is unclear what will happen to St. Vincent's leadership and marketing teams. However, Bulgarella said the goal is to keep caregivers and associates in their positions.
St. Vincent's CEO and Ascension senior vice president Jason Alexander said the agreement between the two companies benefits patients.
"It became clear that adding Ascension St. Vincent's to UAB Health System's network of owned hospitals – and combining and optimizing our collective strengths – is the solution to ensure that our community retains access to sustainable, high-quality healthcare. Among other benefits, patients will gain access to a larger network of local services through UAB," said Alexander. "Even as our structure is changing, Ascension's dedication to health equity and to serving the most vulnerable in Alabama remains steadfast."
"UAB Health System is recognized among the nation's best for innovative, world-class, people-first care, as well as among the best places to work in healthcare," said UAB president and board chairman Ray Watts. "As an Alabama-operated health system we love, understand and meet the needs of our local communities, and we deeply respect Ascension St. Vincent's caregivers' and associates' similar community- and mission-focused commitment."
The sale is expected to be completed sometime in the fall after approval.
Bradford Williams, the Health Planning administrator for the State Health Planning and Development Agency, said UAB will not have to apply for a Certificate of Need in its acquisition of Ascension St. Vincent’s. This is because there will not be any new services or new beds due to the agreement.
Entities acquiring existing health care facilities must file a change of ownership notification. The process provides basic information on the transaction and must be filed within 20 days of the sale closing.
To connect with the author of this story or to comment, email erica.thomas@1819news.com.
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