Dignity Health, CHI Merging to Form New Catholic Health System | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Dignity Health, CHI Merging to Form New Catholic Health System

December 8, 2017
by Heather Landi
| Reprints

Catholic Health Initiatives (CHI), based in Englewood, Colorado, and San Francisco-based Dignity Health officially announced they are merging and have signed a definitive agreement to combine ministries and create a new, nonprofit Catholic health system.

The deal, expected to close in the second half of 2018 and subject to federal, state and church approvals, will create a new health system that includes more than 700 care sites and 139 hospitals across 28 states. The two health systems announced merger talks back in October.

In a press release about the merger, the health systems said the combination of the two organizations will build a “stronger operational and financial foundation to expand access to quality care, build upon complementary resources and capabilities, and reinvest in critical areas to accelerate improvements in care delivery.”

CHI operates in 17 states and comprises 100 hospitals, including three academic health centers and major teaching hospitals as well as 30 critical-access facilities and other facilities and services. CHI reports $15.5 billion in revenue. The two health systems are geographically complementary with no overlap across hospital service areas. Dignity Health is a 22-state network with more than 400 care centers including hospitals, urgent and occupational care, imaging centers, home health and primary care clinics and reported FY2017 revenue of $12.9 billion.

Key strategic and reinvestment priorities for the new system will include:

  • The expansion of community-based care, offering access to services in a variety of outpatient and virtual care settings closer to home;
  • Clinical programs focused on special populations and those suffering from chronic illnesses to keep people and communities healthier for longer; and
  • Further advancement of digital technologies and innovations like stroke robots and Google Glass, which create a more personalized and efficient care experience

“We are joining together to create a new Catholic health system, one that is positioned to accelerate the change from sick-care to well-care across the United States,” Kevin E. Lofton, chief executive officer of CHI, said in a statement. “Our new organization will have the talent, depth, breadth, and passion to improve the health of every person and community we serve."

“By combining our ministries and building upon our shared mission, we will expand our commitment to meeting the needs of all people with compassion, regardless of income, ethnicity, or language,” Lloyd Dean, president and chief executive officer of Dignity Health, said in a prepared statement. "We foresee an incredible opportunity to expand each organization's best practices to respond to the evolving healthcare environment and deliver high-quality, cost-effective care

The new organization will be led by an office of the CEO. Dean and Lofton will both serve as CEOs, each with specific and independent responsibilities and decision-making authority. Together, the CEOs will jointly oversee strategy and integration planning. Lofton will have authority for mission, advocacy, sponsorship and governance, system partnerships, and information technology. Dean will have authority for all of operations, including clinical, financial, and human resources. They will work side-by-side with the executive team to plan a successful integration.

The new organization plans to establish its corporate headquarters in Chicago and operate under a new name that will be chosen in the second half of 2018.

In September 2016, the two systems formed Precision Medicine Alliance LLC (PMA), which will create the largest community-based precision medicine program in the country. A precision oncology program is being implemented in three service areas, and four-to-six more service area launches are planned across the country in the next 12 months. The program’s objective is to be available at nearly 150 CHI and Dignity Health and care centers across the U.S., serving approximately 12 million patients annually.


2018 Denver Health IT Summit

Renowned leaders in U.S. and North American healthcare gather throughout the year to present important information and share insights at the Healthcare Informatics Health IT Summits.

July 12 - 13, 2018 | Denver



Study: 9 in 10 Clinicians to Use Mobile Devices at Bedside by 2022

A recent study indicates a rising adoption in clinical mobility in hospitals and clinicians increasingly see mobile devices as improving the quality of patient care and reducing medication administration errors.

AMGA Survey: Value-Based Care Driving C-Suite Compensation Incentives

A recent survey by the American Medical Group Association (AMGA) of executive and leadership compensation reveals several trends, including that incentive compensation plays an important role in increases and value-based care is driving executive compensation incentives.

Set to Launch in May, All of Us Research Program Gets 15 New Engagement Partners

The National Institute of Health’s (NIH) “All of Us” Research Program now has 15 more community organizations and healthcare provider associations that have signed on to raise awareness about the program and its potential to advance precision medicine.

Report: Advanced Hacker Group, Orangeworm, Targeting Healthcare Industry

A new attack group, dubbed Orangeworm, is conducting targeted cyber attacks against healthcare organizations in the United States, Europe and Asia, according to a new report from researchers at cybersecurity firm Symantec.

EHR Capabilities Impact Patient Satisfaction Levels, Report Finds

Electronic health record (EHR) technology and the ways that providers use it to communicate with their colleagues and with patients is affecting how satisfied consumers are with their hospital organizations, according to a new Black Book market research.

A New Massachusetts Study Finds Consumers Slow to Make Use of Cost Estimate Tools

A new report has found that, even as health insurers in Massachusetts, under pressure to provide cost-estimating tools for their members, are giving them more information, plan members are still largely not taking advantage of new tools