Catholic Health Initiatives, Texas Heart Institute
Sign Letter of Intent to Finalize
Partnership Agreement Worth $220 Million
THI moves to dismiss lawsuit
Houston, Texas (September 16, 2013) – Catholic Health Initiatives (CHI) and the Texas Heart Institute (THI) announced they have signed a letter of intent for exclusive negotiations toward a new partnership, funded by $220 million over the next decade for research and education in cardiovascular diseases.
During the period of exclusivity, CHI and THI will negotiate the terms of a partnership agreement that will advance the mission of both health care organizations. They expect to have an agreement finalized by Dec. 1.
"Texas Heart Institute is excited to have a strong clinical partner committed to our mission and to Houston," said David Grimes, acting chair of the THI Board of Trustees. "It has been a pleasure to negotiate with CHI and we are very excited about our future as partners."
Added Denton A. Cooley, MD, founder and president-emeritus of THI: "We are very pleased and optimistic about this future relationship with CHI, and how we can together advance the vital research and education missions for which we founded THI."
"The Texas Heart Institute and CHI share a vision to create and nurture the health of the patients and communities we serve," said CHI President and CEO Kevin Lofton. "A partnership with THI will play a vital role in our effort to achieve health care's triple aim of improving the patient experience, improving the health of the populations we serve and reducing health care costs."
"Once completed, this partnership promises to provide huge benefits for both THI and CHI as we advance patient care and prevent the ravages of cardiovascular disease," said THI President and Medical Director James T. Willerson, MD. "The potential support for research and new discoveries that help women, children, and men with cardiovascular disease worldwide is especially important."
As part of this agreement, the Episcopal Diocese of Texas, which transferred St. Luke's Health System to CHI in May, will provide CHI with a $50 million contribution for research and education at THI. The transfer of St. Luke's allowed the Diocese to create a new Episcopal Health Foundation committed to addressing the widening gap in health care across a 57-county area. The contribution from the Foundation will be used to support research and education at THI; CHI will fund additional research and education at THI totaling more than $170 million over the next 10 years..
As a result of this letter of intent, THI is dismissing its lawsuit * against St. Luke's, which was filed in state district court in May and sought to dissolve THI's contract with St. Luke's Medical Center. Richard Mithoff, an attorney who represents THI, called the resolution a "win-win for all."
The agreement will be subject to approval of CHI's Board of Stewardship Trustees and THI's Board of Trustees. It also will be subject to applicable government regulatory approval.
* Note: THI's lawsuit was filed in May 2013 in state district court, seeking judicial declaration of THI's rights and obligations in respect to St. Luke's Episcopal Hospital (SLEH), said Mithoff and Eric Wade, with Porter Hedges, LLP.
About Catholic Health Initiatives
Catholic Health Initiatives is a national nonprofit health system with headquarters in Englewood, Colo. The faith-based system operates in 18 states and includes 87 hospitals; 40 long-term care, assisted- and residential-living facilities; two academic medical centers; two community health-services organizations; two accredited nursing colleges; and home health agencies. Currently, CHI ranks as the nation's third-largest faith-based health system, with annual operating revenues of more than $12 billion and approximately 85,500 employees. In fiscal year 2012, CHI provided more than $715 million in charity care and community benefit, including services for the poor, free clinics, education and research.
About Texas Heart Institute
The Texas Heart Institute (www.texasheart.org), founded by world-renowned cardiovascular surgeon Dr. Denton A. Cooley in 1962, is a nonprofit organization dedicated to reducing the devastating toll of cardiovascular disease through innovative and progressive programs in research, education and improved patient care. THI, together with its clinical partner St. Luke's Medical Center, has been ranked among the top 10 cardiovascular centers in the United States by U.S. News & World Report's annual guide to "America's Best Hospitals" for the past 23 years. The Texas Heart Institute is also affiliated with the University of Texas (UT) System, which promotes collaboration in cardiovascular research and education among UT and THI faculty at the Texas Heart Institute and other UT components.
For media inquiries please contact:
Director of Public Affairs
Texas Heart Institute
Frank Michel ♦ 832-355-9510 ♦ email@example.com
See Public Affairs.