Prime Healthcare Acquires Eight Ascension Illinois Hospitals in $370 Million Deal

Prime Healthcare has completed its largest acquisition to date, finalizing a $370 million-plus deal with Ascension Illinois for eight hospitals and additional healthcare assets. The transaction, which closed on March 1, 2025, marks a significant shift in the Illinois healthcare landscape and underscores Prime's aggressive growth strategy.

Deal Scope and Impact

The deal encompasses eight hospitals, four senior living and post-acute care facilities, and several physician practices formerly owned by Ascension Illinois. Prime Healthcare, a for-profit system known for revitalizing struggling hospitals, now boasts a network of 51 hospitals, over 360 outpatient locations, and a workforce of nearly 57,000 employees and affiliated physicians.

Dr. Sunny Bhatia, President and Chief Medical Officer of Prime, expressed optimism about the acquisition: "Prime Healthcare is honored to welcome these hospitals into our award-winning system, building upon our legacy of transforming healthcare and preserving access to life-saving services."

Financial and Operational Commitments

As part of the agreement, Prime Healthcare has pledged a $250 million investment to support facility upgrades, capital improvements, technology investments, and system enhancements across the acquired assets. This commitment aligns with Prime's reputation for turning around financially challenged hospitals.

The deal required approvals from Illinois regulators, the Archdiocese of Chicago, and the Vatican, highlighting the complex nature of healthcare acquisitions involving Catholic institutions. Two of the acquired hospitals—St. Mary's Hospital and Saint Francis Hospital—will be managed by Prime Healthcare Foundation, the company's nonprofit subsidiary, while maintaining their Catholic Church affiliation.

Workforce and Community Impact

Prime Healthcare has extended employment offers to "substantially all associates" at the acquired facilities, aiming to maintain continuity of care and preserve local healthcare jobs. The company has also committed to continuing existing charity care programs, emphasizing its dedication to community health.

Deacon Gerald Keenan of the Archdiocese of Chicago commented on the acquisition's significance: "Prime Healthcare's acquisition of these hospitals will help ensure that our Illinois communities receive the treatment and services they need in a setting that upholds the dignity of the human person."

This strategic move comes as Ascension, a nonprofit healthcare giant, works to streamline its operations amid financial challenges. The system reported a $1.4 billion loss from recurring operations in the fiscal year ending June 2024, underscoring the broader financial pressures facing many healthcare providers.