St. Luke's sale a 'done deal'

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Mark Harden | Denver Business Journal

The sale of St. Luke's to Catholic Health Initiatives is complete.

Bayan Raji

Reporter- Houston Business Journal

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Denver-based Catholic Health Initiatives' acquisition of the St. Luke's Episcopal Health System is complete.

"It's a done deal," a spokesman for St. Luke's said.

The $2 billion sale of St. Luke's to CHI was announced last month. As part of the deal, 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 will commit an additional $1 billion for future investment in the health system.

The sale of the system, which will now be known as the St. Luke’s Health System, includes the Texas Medical Center campus, as well as suburban hospital locations in the Woodlands, Sugar Land, Pasadena and The Vintage. 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 The University of Texas M.D. Anderson Cancer Center.

The Texas Heart Institute, housed inside a St. Luke's hospital in the TMC, filed a motion May 16 with Harris County District Court asking the court to declare it a separate entity from the hospital system.

Texas Heart is dependent upon financial support from government grants, research contracts, philanthropy and annual support from St. Luke's. However, the institute called its relationship with St. Luke's "not feasible going forward."

The motion had no effect on the transaction with CHI, a spokesman with St. Luke's said, but he declined to comment on the ongoing legal matter.

Bayan Raji covers health care and talent for the Houston Business Journal. For her breaking stories and industry insights, follow her on Twitter.