USA Health votes to acquire Providence Hospital

Catholic hospital adds about 350 beds to USA Health System

Providence Hospital.

Mobile’s century-and-a-half-old Providence Hospital will become part of the University of South Alabama Health System in an $85 million transaction announced today.

University officials said that Catholic health care provider Ascension approached USA last April about the possibility that it would take over the hospital and its associated clinics.

With the acquisition, which is expected to close this fall, USA Health will have three hospitals — its flagship University Hospital on the city’s north side; USA Children’s & Women’s and now Providence, on the west side of town, much closer to the university’s medical, nursing and allied health schools.

“The values shared by USA Health and Providence make the acquisition a good fit,” said University of South Alabama President Jo Bonner. “USA Health and Providence have long shared a commitment to provide compassionate care to those who need it the most, and that core value will not change.”

Don King, president and CEO of Ascension Florida and Gulf Coast, said, “Ascension Providence has a legacy of serving the health care needs of the community that dates back to the mid-1800s. We are pleased that this strong tradition will continue as the hospital and its related services transition to USA Health, which will allow associates and physicians to continue to serve the community through an integrated care delivery system. This transition will ensure that the Mobile community and surrounding regions have sustainable, quality health care access long into the future.”

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Providence brings a 24/7 emergency department, a level III trauma center, outpatient diagnostic center and a freestanding rehabilitation and wellness center to the mix. USA Health also offers 24/7 emergency care, plus a level I trauma center, burn center, stroke center, neonatal and pediatric intensive care units.

“Acquiring Providence Health System will allow us to enhance our capabilities across our tripartite mission of education, research and clinical care,” said Dr. John V. Marymont, vice president for medical affairs and dean of the Frederick P. Whiddon College of Medicine at the University of South Alabama. “The acquisition will create jobs and opportunities for more people across a wide spectrum to bolster Mobile and the surrounding area. It now gives Providence the benefit of local leadership and enhances our commitment to serve this community.”

USA Health Chief Executive Officer and Senior Associate Vice President for Medical Affairs Owen Bailey added, “This agreement is good news for patients, employees, the Mobile community and the surrounding region.”

Until the deal is finalized this fall, the two will continue to operate independently.

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