Catholic Health Initiatives acquired the four-hospital Memorial Health System of East Texas on June 1. The systems did not disclose the financial details of the deal.
Based in Lufkin, Texas — about 120 miles northeast of Houston — Memorial Health System includes the 271-bed Memorial Medical Center–Lufkin, the 66-bed Memorial Medical Center–Livingston, the 18-bed Memorial
Medical Center–San Augustine and the 26-bed long-term acute care hospital called Memorial Specialty Hospital. Memorial Health System had net patient service revenues of $179 million in fiscal year 2013. Englewood, Colo.-based CHI's net patient service revenues were $9.8 billion for that fiscal year. CHI operates in 18 states.
A joint news release from CHI and Memorial Health System said the organizations "recognize that changes in the national health care landscape present challenges to a stand-alone health care system. Being part of a national system is vital to the future success of health care organizations."
According to information from CHI, Memorial Health System will become a Catholic facility, following the Ethical and Religious Directives for Catholic Health Care Services. CHI said Memorial Health System will continue to have a local governing board — CHI will evaluate that board's structure and could make changes to better align the governing group with CHI's governance model. The board will include representatives from the community, including local physicians, as well as from CHI.
CHI plans to continue Memorial Health System's level of charity care, and may even increase it as CHI expands services, according to CHI spokesman Michael Romano.
Current employees of Memorial Health System will retain their jobs and will not have to reapply.
Memorial Health System will retain its name for now. Romano said any name changes will be made with the involvement of Memorial Health System's board and leadership. CHI recently announced that it now is incorporating its system acronym in its facilities' names and using a new logo and branding.
The news release from CHI and Memorial Health System said the acquisition is part of the systems' commitment "to strengthening health care in Texas." About a year ago, CHI purchased the six-system St. Luke's Episcopal Health System in the Houston region, renaming it CHI St. Luke's Health.
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