The Significance Of Catholic Medical System Merger With Dignity

Catholic Medical Initiatives (CHI) and Dignity Health.

The news has long been broken about the merger plans of Catholic Medical Initiatives (CHI) and Dignity Health.

Organizations have good reasons for mergers. The most of it is to expand, improve services and have a good standing economically.

There is nothing much different in the merger of these two healthcare giants in the US who have their roots in the Church.

They both have their strong points which would serve to make a bigger and better company.

What significance has the mergers between CHI and Dignity got to offer and how has it affected the union so far?

Dignity Health – A Little Brief


Dignity Health

California-based dignity health is a non-profit corporation that runs hospitals and care services in the US. It ranks as the fifth largest operators of hospital systems in the United States.

It runs the biggest non-profit hospital provider in California State.

Dignity was formally called Catholic Healthcare West when established by the Sisters of Mercy in 1986.

With a change in the corporate governance structure and out from the Catholic Church in 2012, the name was changed to Dignity Health.

The company operates a collection of hospitals including 39 acute-care hospitals in 3 states in the US, 31 of these hospitals are located in California.

Catholic Medical Initiatives

Catholic Medical Initiatives (CHI), as the name suggests, is a non-profit, faith-based health system in Englewood, Colorado as headquarters.

CHI, as a health giant, owns up to 100 acute-care hospitals in not just three states but 18 states in the US.

The Financial Struggles Of CHI

Catholic Medical Initiatives

It’s been a chain of financial struggles for CHI over the past years. The losses saw the hospital system working to bring changes by selling its money-losing hospitals in Louisville.

The downturn also saw the company exiting the insurance business. The operating losses of the hospital system grew from a high of $371.4 million in 2016 to $585.2 million in 2017.

The company reported that some states were worst hit in the financial struggles such as Texas in 2017.

The merger of the two big players in the healthcare sector hopes to achieve a health system that puts the patient in the number one spot.

According to the CEO of Dignity Health Loyld Dean, patients sit atop the entire plan of the merger to offer quality and affordable healthcare services. He believes the merger scaled-up clinical services and as well attracts and retains talents. They hope to come up with a health care system that reduces cost and improve quality of service.

He said the union will help to spread the cost of healthcare over a much larger platform that will be born. This is expected to also extend to reach rural communities.

The CHI CEO, Kelvin Lofton, was also optimistic about what should be expected. According to him, the merger is bringing together a new Catholic Health System that will offer effective healthcare service.

The expected organization is hoped to have sufficient talents, depth, and commitment to improving the health care of everyone in the community they serve.

Significant Effects To Be Seen

The new development that will be created, the Catholic Medical System-Dignity partnership.

The new development that will be created, the Catholic Medical System-Dignity partnership, is expected by some experts to trigger some changes in the health care system.

There is no doubt about the fact that an improved healthcare facility will be created. On the second hand, the administration may be an issue.

The question of who heads what or call the shorts at various departments was a concern.

On the positive end, productivity is expected to increase. The new company will have over 700 care centers, 139 hospitals with about 159, 000 employees and 25, 000 physicians working in the new facility when combined.

If there is going to be uproar, it may likely come from the workers of the two companies who will be adjusting to the new changes.

True to this, workers such as Dignity nurses are already challenging the CHI-Dignity merger move.

The co-CEO approach was seen by experts as a structure that can affect continuity and culture. But John Lloyd affirmed Bob Garett’s conclusion that the shared roles have worked pretty well in the resulting union.

They hold that both companies have their area of strength and comparative advantage and this will work very well with the shared role.

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