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The parent company of Mercy Medical Center is in the final stages of a merger of Dignity Health.

Mike Henneke/The News-Review

Catholic Health Initiatives, the parent company of CHI Mercy Medical Center in Roseburg, is in the final stages of its merger with Dignity Health of San Francisco. The merger would result in the largest nonprofit hospital system in the U.S.

Roseburg’s Mercy Medical Center is one of CHI’s 103 hospitals across 22 states.

The San Francisco-based Dignity Health runs 39 hospitals in California, Nevada and Arizona, according to the Hertel Report. The two companies combined currently employ about 162,000 people. Together, the two Catholic-affiliated health companies have a revenue of $27.8 billion, according to Modern Healthcare.

“Dignity Health/Catholic Health Initiatives are in the final stages of the due diligence process to assess the potential alignment of our ministries and we are pleased with the progress made to date,” Peggy Kraus, system director for leadership communications at CHI, said in a statement Tuesday. “We look forward to being able to share additional information with you in the near future.”

Kraus said no other information could be released at this time.

CHI, based in Englewood, Colorado, announced it was pursuing the potential merger about a year ago.

Catholic Health Initiatives announced an operating loss of $483 million for fiscal year 2016 in its earnings statement. The losses were due to “lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid.” CHI plans to sell its health insurance business, QualChoice Health, which accounted for $110 million of the losses.

Dignity Health also had an operating loss of $63 million for fiscal year 2016.

CHI’s revenue was $15.9 billion in fiscal year 2016 while Dignity Health reported a $12.6 billion revenue.

Both have been running in debt as well. CHI’s annual debt service was $460 million on $9 billion in total debt and Dignity Health’s is $408 million per year on $5.3 billion in total debt.

Reporter Emily Hoard can be reached at 541-957-4217 or ehoard@nrtoday.com. Or follow her on Twitter @hoard_emily.

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Outdoors and Natural Resources Reporter

Emily Hoard is the business, outdoors and natural resources reporter for The News-Review. She can be reached at 541-957-4217 or by email at ehoard@nrtoday.com. Follow her on Twitter @hoard_emily.

(2) comments

Mogie

Read Mercy's reviews on Yelp. https://www.yelp.com/biz/mercy-medical-center-roseburg-3

Mogie

"“Dignity Health/Catholic Health Initiatives are in the final stages of the due diligence process to assess the potential alignment of our ministries and we are pleased with the progress made to date,” Peggy Kraus, system director for leadership communications at CHI, said in a statement Tuesday." So Mercy is a ministry and not just a hospital. Why are some doctors not allowed to treat patients that are at the hospital? Do they have to fall in line with Mercy's policy/agenda before they are granted that priviledge?

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