Altru Health System Awaits Vatican Approval for Devils Lake Hospital acquisition
Grand Forks, N.D.-based altru Health System is nearing the completion of its acquisition of Devils Lake Hospital in North Dakota. The critical access hospital is currently owned by Chicago-based CommonSpirit Health. However, the finalization of the deal hinges on one crucial step: approval from the Vatican.
Derek Goebel, Chief Financial Officer for Altru health System, shared in a recent Becker’s CFO+Revenue Cycle Podcast episode that all transactional documents between Altru and CommonSpirit have been finalized. The delay in execution is due to CommonSpirit health’s Catholic affiliation, which requires Vatican approval for such transactions.
“We’re eagerly awaiting the result from the Vatican to execute the transaction, and both sides are anxious to see that come to fruition,” Mr. Goebel stated. “It’s going to be a realy great thing for the community.”
Altru Health System signed a nonbinding letter of intent to acquire Devils Lake Hospital from commonspirit Health in late June 2024. If the acquisition is approved, Tanner White is slated to serve as the CEO of the 25-bed facility. Altru already operates a clinic adjacent to the hospital, offering primary care and outpatient services, including renal dialysis. This acquisition is expected to facilitate more streamlined care across both entities.
“The next step is actually the transition of the staff and the providers from devils Lake onto the Ultra team,” Mr. Goebel explained. “We’ve got some onboarding planned. We’ve got [an] Epic implementation expected [at the hospital] basically the next moment we have that acquisition done.โฆ We’ve worked through the transaction documents and details, and [are] ultimately waiting for that final piece. It should be a very quick transition.”
This strategic move aligns with Altru’s overarching objective to maintain local healthcare services and preserve its operational independence. The health system recently became part of the Rough Rider Network, a collective of 23 rural hospitals located across North Dakota, as indicated on its website.
“We’ve explored a lot of different avenues to cut cost from healthcare, but continue to keep independence and to serve the population that we need,” Mr. Goebel added.
Evergreen Insights
The acquisition of Devils Lake Hospital by Altru Health System highlights the complex regulatory and organizational structures within healthcare, particularly for faith-based institutions. CommonSpirit Health, as one of the largest catholic health systems in the United States, operates under specific governance protocols that can influence its strategic decisions, including hospital sales.The involvement of the Vatican in approving such transactions underscores the deep integration of religious mission and operational management within these organizations. This process can introduce unique timelines and considerations compared to secular healthcare acquisitions. furthermore, Altru’s stated goal of preserving local healthcare and independence, coupled with its recent integration into the Rough Rider Network, reflects a broader trend of rural healthcare systems seeking collaborative models to ensure sustainability and continued service delivery in underserved areas.
Frequently Asked Questions
Q: Why does the Vatican need to approve the acquisition?
A: CommonSpirit Health is a Catholic health system, and its affiliation requires Vatican approval for meaningful transactions like the sale of a hospital.
Q: what services does Altru Health System currently offer in the Devils Lake area?
A: Altru operates a clinic with primary care and outpatient services,including renal dialysis,connected to the Devils Lake Hospital.
Q: who will be the CEO of Devils Lake Hospital if the deal is approved?
A: Tanner White is expected to serve as the CEO of the 25-bed hospital.
Compliance & Disclaimers
This article provides information on a healthcare business transaction and does not constitute financial, legal, or health advice. Readers should consult with qualified professionals for advice specific to their situations.
What are your thoughts on this unique acquisition process? Share your insights in the comments below and subscribe to World Today News for more updates on the healthcare industry!