Saint Clare’s Health System Board Recommends Ascension Health Care Network
DENVILLE, NJ (March 16, 2012) - The Saint Clare’s Health System board and Catholic Health Initiatives have decided to seek a new owner for Saint Clare’s Health System to better meet the demands and needs of the communities served by SCHS.
The Saint Clare’s Health System board recommended Ascension Health Care Network, Inc., an affiliate of Ascension Health, St. Louis, Mo., to its current sponsor, Catholic Health Initiatives, Englewood, Colo., after a thorough year-long evaluation of strategic alternatives and discussions in recent months with Catholic, not-for-profit and for-profit health care organizations that expressed interest in Saint Clare’s.
The Board recognized that as health care reform continues to evolve, it will be critical for health providers to be part of a broad network of coordinated health care organizations including health providers, payers and other related health entities.
The parties have agreed to enter into exclusive negotiations with the intent of signing a non-binding Letter of Intent to transfer ownership of Saint Clare’s Health System to Ascension Health Care Network. Terms of the agreement will be negotiated and it is expected that a Definitive Agreement will be reached by June 30, 2012, with the transaction closing scheduled before the end of the calendar year.
Ascension Health Care Network has committed to maintain Saint Clare’s Health System Catholic identity and honor its legacy.
The transfer will require approvals from Catholic Health Initiatives, federal, state and Church authorities.
Ascension Health is transforming healthcare by providing the highest quality care to all, with special attention to those who are poor and vulnerable. Ascension Health, which provided more than $1 billion in care of persons who are poor and community benefit last year, is the nation’s largest Catholic and nonprofit health system. Its Mission-focused Health Ministries employ 113,000 associates serving in more than 500 locations in 20 states and the District of Columbia.
Ascension Health Care Network is a joint venture with Oak Hill Capital Partners that provides an alternative funding source for the acquisition of Catholic hospitals and other health care provider entities.
Catholic Health Initiatives is a national nonprofit health organization with headquarters in Englewood, Colo. The faith-based system operates in 19 states and includes 76 hospitals; 40 long-term care, assisted- and residential-living facilities; two community health services organizations; two accredited nursing colleges; and home health agencies. In fiscal year 2011, CHI provided more than $612 million in charity care and community benefit, including services for the poor, free clinics, education and research. With annual revenues of more than $10.5 billion, CHI is the nation's second-largest Catholic health care system.
Oak Hill Capital Partners is a private equity firm with more than $8.2 billion of committed capital from leading entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Over a period of more than 24 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 60 significant private equity transactions. Oak Hill Capital Partners is one of several Oak Hill partnerships, each of which has a dedicated and independent management team. These Oak Hill partnerships comprise over $30 billion of investment capital across multiple asset classes. For more information about Oak Hill Capital Partners, please visit www.oakhillcapital.com.
Saint Clare’s Health System, which has served the healthcare needs of northwestern New Jersey residents since 1895, is the region’s premier provider of community-based healthcare and behavioral health services. Saint Clare’s operates hospitals in Boonton Township, Denville, Dover and Sussex Borough and other facilities located throughout Morris and Sussex counties.