Catholic Health Initiatives to merge with Kentucky hospitals

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Catholic Health Initiatives – the parent company of Penrose St. Francis Health Services – has signed a letter of intent to merge eight of its hospitals in Kentucky with other health care systems.

Catholic Health will contribute $300 million in capital to the newly formed entity. CHI co-owns Centura Health and operates a dozen hospitals and seven hospice services, home care and senior-living communities in Colorado.

In Kentucky, the newly formed entity will include the University of Louisville Hospital, CHI hospitals in that state, Frazier Rehab Institute, Jewish Hospital Shelbyville, Jewish Hospital Medical Center, along with St. Mary and Elizabeth and Our Lady of Peace hospital.

When finalized, the combined organizations will include more than 3,000 physicians throughout Kentucky. The three organizations have combined revenue of more than $2 billion.

Headquartered in Denver, CHI is the nation’s third-largest Catholic health-care system, operating 73 hospitals in 19 states. In fiscal year 2010, CHI provided nearly $590 million in charity care, including services for the poor, free clinics, education and research. CHI has annual revenue of about $9 billion.