Issue link: https://beckershealthcare.uberflip.com/i/888081
16 CFO / FINANCE Presence Health to Join Ascension By Kelly Gooch S t. Louis-based Ascension, the nation's largest non- profit Catholic health system, signed a nonbinding letter of intent Aug. 22 to acquire Chicago-based Presence Health, Illinois' largest Catholic health system. Under the deal, Presence's medical centers, outpatient facilities and other care sites would be operated by Ami- ta Health, a joint venture created by Ascension's Arling- ton Heights-based Alexian Brothers Health System and Hinsdale, Ill.-based Adventist Midwest Health, part of Altamonte Springs, Fla.-based Adventist Health System. Ascension would own the facilities. Presence Life Connections' skilled nursing and assisted and independent living facilities would join Ascension's senior care subsidiary, the companies said in a news re- lease. "e mission, values and history of Presence Health clearly align well with those of Ascension, as both sys- tems are dedicated to caring for all, with special attention to persons living in poverty and those most vulnerable," Ascension President and CEO Anthony Tersigni, EdD, said in the release. "We believe this will strengthen Cath- olic healthcare not only in the region but throughout the country as we are all dedicated to delivering personalized, compassionate care." Mark Frey, president and CEO of Amita and senior vice president of St. Louis-based Ascension Healthcare, a di- vision of Ascension, also expressed excitement about the proposed transaction. "Since we brought together Alexian Brothers Health Sys- tem and Adventist Midwest Health to form Amita Health two years ago, we've always looked for opportunities to add like-minded partners with similar values to our sys- tem," he said. "Bringing Presence Health into Ascension and Amita Health is a perfect fit and an exciting contin- uation of our commitment to increase access to quality healthcare in the many communities we serve." Presence President and CEO Michael Englehart echoed these sentiments, saying his system "look[s] forward to working together to engage in this joint effort to expand, and continue to deliver, quality care for our patients and residents, as well as provide additional clinical opportu- nities and patient care resources to all our physicians and associates." e systems said a definitive agreement is expected in the future "pending detailed legal and financial due diligence, along with regulatory and canonical approval." e deal, if completed, would add 10 Presence hospitals to Ascension and Amita, increasing Ascension's hospitals to 151. Peoria, Ill.-based OSF HealthCare also announced plans in Au- gust to own the other two Presence hospitals — Presence Covenant Medical Center in Urbana, Ill., and Presence United Samaritans Medical Center in Danville, Ill. n BJC Healthcare Sells Shuttered 127-Bed Hospital for $13 By Alyssa Rege S t. Louis-based BJC Healthcare sold Mineral Area Regional Medical Center, a shuttered 127-bed facility in Farmington, Mo., for $13 in May, according to the St. Louis Post-Dispatch. Sharo Shirshekan, a nursing home owner and operator who pur- chased Mineral Area Regional Medical Center, said he considered the number 13 to be lucky and therefore used the figure as the purchase price, his attorney told the Post-Dispatch. The former acute care hospital will reportedly be turned into a mental health complex comprising a 48-bed psychiatric hospital operated by Farmington Hospital and Behavioral Clinic, a 65-bed skilled nursing facility operated by Farmington Nursing Center, and an intensive outpatient mental health clinic, according to docu- ments submitted to the Missouri Department of Health and Senior Services. The Post-Dispatch obtained copies of the documents. According to additional sales documents obtained by the Post-Dis- patch, BJC Healthcare claimed the building "potentially contained significant amounts of absestos, mold and other potentially haz- ardous materials." The documents also said there were "significant costs associated with tearing the building down," the report states. BJC Healthcare purchased the medical center in 2015 and closed the facility roughly nine months later, according to the report. n Cleveland Clinic More Than Triples Operating Income in Q2 By Ayla Ellison F ueled by higher patient volume, Cleveland Clinic Health Sys- tem saw revenues increase and operating income more than triple in the second quarter of this year, according to bond- holder documents. The system recorded revenues of $2.16 billion in the second quarter of this year, up from revenues of $1.98 billion in the same period of the year prior. The revenue growth was largely attribut- able to higher patient volumes. Compared to the second quar- ter of 2016, acute admissions were up 4.8 percent in the second quarter of this year. The system also saw growth in surgical cases and outpatient visits. Operating expenses climbed 4.6 percent year over year, which was largely due to higher patient volumes. To address expense growth, Cleveland Clinic said it is implementing cost containment plans. Cleveland Clinic ended the second quarter of this year with operat- ing income of $130.5 million, more than triple the system's operat- ing income of $40.2 million in the second quarter of 2016. After factoring in strong nonoperating gains, Cleveland Clinic ended the second quarter of this year with net income of $303.3 million, compared to $127 million in the same period of the year prior. n