Wheaton Franciscan Healthcare facilities in southeast Wisconsin to join Ascension
MILWAUKEE -- A major hospital transaction is in the works in Milwaukee. Wheaton Franciscan Healthcare is about to join the same system as Columbia St. Mary's. Under this tentative deal, Wheaton would become part of Columbia's parent company, Ascension.
Ascension, the nation’s leading non-profit health system and world’s largest Catholic health system, signed a letter of intent with the Wheaton Franciscan Sisters for the transfer of all southeast Wisconsin operations and related corporate services of Wheaton Franciscan Healthcare to Ascension Wisconsin.
Wheaton Franciscan Healthcare
"It will probably improve Columbia St. Mary's in some ways in terms of what they can offer within the larger system with Wheaton Franciscan. It also gives Wheaton Franciscan more of a presence on the East Side, North Shore, Ozaukee County areas where Columbia St. Mary's is," said Rich Kirchen with the Milwaukee Business Journal.
Upon the expected closing of this transaction in the first quarter of 2016, Ascension Wisconsin will comprise 27 hospitals, more than 24,000 associates including 1,000 medical group physicians, 150 clinics, and $3.5 billion in annual operating revenues.
Wheaton Franciscan Healthcare is one of the largest healthcare providers of care in southeastern Wisconsin, with nearly 11,000 associates including 350 medical group physicians. In Fiscal Year 2015, the system provided $139 million in charity care and other community benefits through its eight hospital campuses comprising 996 hospital beds, three long-term care facilities, and other sites of care.
Columbia St. Mary's
Ascension Wisconsin – which is composed of Ministry Health Care based in Milwaukee and Columbia St. Mary’s in Milwaukee – would expand to include Wheaton Franciscan Healthcare including All Saints in Racine, Elmbrook Memorial Campus in Brookfield, St. Joseph and St. Francis in Milwaukee; Wisconsin Heart Hospital and Midwest Spine and Orthopedic Hospital in Wauwatosa; Franklin Hospital and Midwest Orthopedic Specialty Hospital, a joint venture, in Franklin; Wheaton Franciscan Medical Group, outpatient centers, three transitional and extended care facilities, Home Health, and Hospice.
“Wheaton Franciscan Healthcare and Ascension share the same mission – caring for all persons, especially those who are struggling the most,” said Robert J. Henkel, FACHE, executive vice president, Ascension, and president and CEO, Ascension Health. “We share the same approach to serving our communities – providing compassionate, personalized care to all throughout their life.” Ascension Health is the healthcare delivery subsidiary of Ascension.
“This decision came after a lengthy discernment process by the Sisters as we are aging and our numbers are getting smaller in the United States. We wanted to transfer our corporate ministries while these ministries are healthy, fiscally sound, and have a strong sense of mission and values,” said Sister Pat Norton, chair of the sponsor member board for Wheaton Franciscan Healthcare. “The choice to transfer our ministries ensures that the needs of the times will continue to be addressed in each community, as the Sisters have worked to do for more than 140 years,” she added.
“Wheaton Franciscan Healthcare has a long history of delivering high-quality and compassionate care in southeastern Wisconsin through our dedicated physicians and associates,” said John Oliverio, president and CEO, Wheaton Franciscan Healthcare. “We look forward to our continued discussions with Ascension and the opportunity to be part of an organization that shares our strong commitment to our local communities. We anticipate reaching a definitive agreement and completing the transfer in early 2016.”
“I’ve known John Oliverio for many years, and he is a tremendous, spirit-filled servant leader,” said Anthony R. Tersigni, president and CEO, Ascension. “Under his steady guidance, Wheaton Franciscan Healthcare has become an important part of the Catholic healthcare ministry in the United States.”
“We believe the addition of associates, physicians, caregivers and volunteers from Wheaton Franciscan Healthcare will allow them to benefit from the scale and expertise of Ascension, while also contributing their expertise to help us lead the transformation of healthcare as we serve individuals in our communities,” said Nick Desien, senior vice president, Ascension Health/Wisconsin Ministry market executive.
The transition in southeastern Wisconsin is planned to occur in coordination with the Wheaton Franciscan Sisters’ transfer of their other health care and housing ministries in Iowa, Illinois, and Colorado.
The transfer to Ascension is only a letter of intent -- so preliminary that both Wheaton and Ascension representatives declined recorded interviews Thursday, October 29th.
The next step is a definitive agreement, expected at the end of the year.
The actual transfer is expected to take place in the first quarter of 2016.