Ascension plans to sell Lourdes in Washington and St. Joseph in Idaho to Capella

August 1, 2015

Ascension and two of its health care systems — Lourdes Health Network in Pasco, Wash., and St. Joseph Regional Medical Center in Lewiston, Idaho — have signed letters of intent for Capella Healthcare to acquire Lourdes and St. Joseph.

Robert J. Henkel, executive vice president of St. Louis-based Ascension and president and chief executive of Ascension Health, said in a June 30 statement that Ascension's goal has been to strengthen the health care ministries so they can continue to provide exceptional health care to the communities they serve. "Capella Healthcare already has a presence in the Pacific Northwest, and we're confident this change in ownership would give Lourdes and St. Joseph the ability to serve the Pasco and Lewiston communities well into the future."

The Lourdes and St. Joseph systems, located in communities about 130 miles apart, are Ascension's only properties in the Pacific Northwest, according to a map on Ascension's website.

The for-profit Franklin, Tenn.-based Capella Healthcare already owns 13 acute care and specialty hospital facilities in six states, including Willamette Valley Medical Center in McMinnville, Ore., and Capital Medical Center in Olympia, Wash.

Lourdes includes an acute care medical center, a behavioral health hospital, a network of about 17 primary care and specialty clinics and numerous outpatient services.

St. Joseph bills itself as the largest full-service medical center between Boise, Idaho, and Spokane, Wash.

Both Ascension and Capella have expressed support for maintaining the organizations' faith-based heritage.

The systems involved in the deal said terms were confidential and additional information would not be released until a definitive agreement has been reached.

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