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Carondelet Health Signs Agreement with HCA Midwest Health System
KANSAS CITY, MO—(May 2, 2013)—Carondelet Health, a Health Ministry of Ascension Health, and HCA Midwest Health System today announced an agreement whereby Carondelet Health will sell St. Joseph and St. Mary’s Medical Centers, which will become part of the HCA Midwest Health System.
Included in the transaction is Carondelet Health’s ownership in: Carondelet Home Care, Carondelet Cardiology Services, Carondelet Health Resources, Carondelet Medical Enterprises, Carondelet Occupational Health, Wellness and Education Services, Carondelet Health Pharmacy, Carondelet Physicians Services, South Kansas City Surgery Center and St. Mary’s Surgical Center. Carondelet Manor, Villa St. Joseph, St. Mary’s Manor and the two hospital foundations will remain operated by Ascension Health.
The HCA Midwest Health System is Kansas City’s largest healthcare provider and private sector employer, which has 10 hospitals, outpatient centers, clinics, physician practices, surgery centers and an array of other services to meet the healthcare needs of the greater Kansas City area. This will give the HCA Midwest Health System a total of 12 hospitals, 7 surgery centers and over 10,000 employees.
The HCA Midwest Health System will work with the local Catholic Diocese to preserve the hospitals’ Catholic heritage. “HCA Midwest Health System intends for Carondelet Health to continue operating in accordance with the Ethical and Religious Directives for Catholic Health Care Services,” said Fleury Yelvington, President and Chief Executive Officer, Carondelet Health. “This agreement with HCA Midwest Health System will strengthen Carondelet’s presence in the Kansas City area and ensure the system’s long-term success.”
“We are pleased our agreement with Carondelet Health has been signed,” said M.L. Lagarde, President of HCA Midwest and HCA’s MidAmerica Division. “We are looking forward to securing required regulatory approvals and finalizing the sale. We respect the dedication and skill of the professionals of St. Joseph and St. Mary’s medical centers, and we are committed to continuing the hospitals’ tradition of providing quality, Catholic healthcare to our communities.”
“This agreement with HCA Midwest Health System supports Ascension Health’s focus on serving communities as needed and how needed,” said Robert J. Henkel, FACHE, President and Chief Executive Officer, Ascension Health. “Ascension Health will continue to serve the greater Kansas City community by helping to meet the growing need for senior services through Carondelet Manor, Villa St. Joseph and St. Mary’s Manor.”
“I am hopeful that this agreement will assure the viability and Catholic identity of St. Joseph and St. Mary’s medical centers,” said St. Joseph Bishop Robert W. Finn. “The Catholic community can also be thankful that as members of the HCA Midwest Health System, St. Joseph and St. Mary’s will continue to offer the charitable and community outreach that has been the legacy of the Sisters of St. Joseph in Kansas City for nearly 150 years.”
The transaction is expected to be complete by the end of the year, subject to customary regulatory approvals. Specific terms of the asset purchase agreement were not released.