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TEXAS:Diocese approves transfer of St. Luke's hospital to Catholic Health System

TEXAS: Diocese approves transfer of St. Luke's hospital to Catholic Health Initiatives
$1 billion health foundation to be established

http://www.stlukestexas.com/NewsAndEvents/news_articles.cfm?article=488
April 19, 2013

The Episcopal Diocese of Texas approved today a Definitive Agreement for the transfer of St. Luke's Episcopal Health System to Catholic Health Initiatives, a nationally recognized health care system.

As part of the transfer of St. Luke's, CHI will contribute more than $1 billion to create a new Episcopal Health Foundation, which will focus on the unmet health needs of the area's underserved population. In addition, CHI has committed an additional $1 billion for future investment in the health system. The Right Reverend C. Andrew Doyle, Bishop of the Episcopal Diocese of Texas, said in announcing the decision, "We are humbled to be able to preserve the legacy of St. Luke's, while also expanding the Diocesan commitment to health care."

The name of the System will be the St. Luke's Health System. The transaction is expected to be completed early this summer, subject to obtaining required regulatory approvals. The Agreement includes the entire Health System: the Texas Medical Center campus, as well as suburban hospital locations in The Woodlands, Sugar Land, Pasadena and The Vintage. CHI has committed to maintain all current physician models and all employees will continue to be employed by St. Luke's. In addition, CHI will continue to grow and enhance St. Luke's significant affiliations with Baylor College of Medicine, Texas Heart® Institute, Kelsey-Seybold Clinic, Texas Children's Hospital and MD Anderson Cancer Center.

The 11-month evaluation process undertaken by the St. Luke's Episcopal Health System Board included 30 prospective local and national partners with multiple strategic alternatives and, in March, this list was narrowed to three well-qualified finalists. "We are enormously grateful to all participants for their earnest and forthright effort throughout this process," said The Right Reverend Dena A. Harrison, Bishop Suffragan and Chair of the St. Luke's Episcopal Health System Board.

CHI became the choice because it brings many benefits to the community:

CHI operates across the continuum of care that is so key to the new model in American health care delivery.

CHI brings cultural compatibility with the St. Luke's brand of Faithful, Loving Care®.

CHI values the people who made St. Luke's what it is today: our patients, our physicians, our employees, our affiliates, our management, our donors and our Board leadership.

"The relationship with Catholic Health Initiatives ensures the Greater Houston area will retain one of its great healthcare institutions, while best preparing St. Luke's to meet future changes in healthcare," said Kevin Lofton, CHI President and CEO.

While this decision means the Episcopal Diocese of Texas will no longer provide acute care, the Diocese remains committed to its health care mission through the new Episcopal Health Foundation. "This new Foundation will address a widening gap in healthcare throughout our 57-county area," Bishop Doyle said.

"There is a care vacuum that must be addressed, including access to health care, prevention, community and environmental health, poverty, education and health disparities," he said, adding, "This direction reflects the initial vision of Bishops Quin and Hines in founding St. Luke's. They called upon 'all the mountain-moving powers of faith and prayer and human skill which can be brought to bear on individuals in need.'"

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