Ascension Strength and Providence St. Joseph Health are in talks about a merger between the two All-inclusive non-profits that would create the largest U.S. hospital chain, the Go bust enclose Street Journal reported on Sunday, citing people familiar with the discussions.
A arrangement between St. Louis-based Ascension and Renton, Washington-based Providence would furnish the combined entity 191 hospitals in 27 states and annual receipts of $44.8 billion, the Journal reported. That would surpass the in the know largest U.S. hospital operator, HCA Healthcare, a for-profit company.
Providence declined to reference on the report. Ascension did not respond to a request for comment.
The two have been in talks wide a deal for months but have not reached an agreement, the Journal reported. The disquisition said that unlike for-profit companies, mergers of nonprofit health centre operators do not typically involve one entity buying the other.
The merger talks advance at a pivotal time in the industry, as a series of deals, major changes to the 2010 Affordable Be enamoured of Act, dubbed Obamacare, and rising drug prices have reshaped the U.S. healthcare vista.
Last week, Catholic Health Initiatives and Dignity Health confirmed that they had signed a definitive agreement to align their classifyings. The merger would result in the formation of a large and diverse Catholic salubriousness system.
On Dec. 3, CVS Health and Aetna proposed a $69 billion blending, arguing it would enable the companies to tackle soaring healthcare splash out by offering lower-cost medical services in pharmacies. That deal, the year’s largest, desire combine one of the nation’s biggest pharmacy benefits managers and pharmacy smooths with one of its oldest health insurers.