24.chw/toledano/ 5″/dt1st/mark2nd

No. 24

Caltholic Healthcare West Buys UniHealth

One of the most significant deals in the health care industry this year was Catholic Healthcare West’s acquisition of eight UniHealth hospitals in Los Angeles and Orange counties.

The acquisition, which was completed in early December, made San Francisco-based Catholic Healthcare West the second-largest hospital chain in Southern California after Tenet Healthcare.

Financial terms were not disclosed, but industry observers say it was a sweetheart deal for Catholic Healthcare West. Nonetheless, buying the troubled hospitals from Burbank-based UniHealth was not an easy decision for executives at CHW.

The hospitals have been experiencing serious financial woes over the past few years. In fact, seven of the eight hospitals collectively lost $11.1 million in their most recent fiscal year, according to the Office of Statewide Health Planning and Development.

Catholic Healthcare West now has 13 hospitals in Southern California including St. Vincent Medical Center in downtown Los Angeles and St. Mary’s Medical Center in Long Beach, which it owned before the UniHealth deal. Tenet owns 16 hospitals in Los Angeles.

Jessica Toledano