April 2012

CHI, Alegent Health to Acquire Creighton University Medical Center in Omaha

Creighton University and Alegent Health, Omaha, NE, announced agreements forming a long-term strategic affiliation, which includes the planned acquisition of Creighton University Medical Center (CUMC) from Creighton and its clinical partner, Tenet Healthcare. The addition of CUMC into the Alegent Health family will make Alegent the primary teaching sites for Creighton’s health sciences schools, enhancing both the academic experience for students and health care in the greater Omaha community.

Alegent Health will expand its academic footprint that currently includes 14 academic affiliations between Alegent and Creighton, including OB/GYN residency, nursing and pharmacy. Alegent is also the primary teaching site in the region for psychiatry.

As part of the agreement with Creighton University, Alegent Health would assume operations of Creighton’s physician group, Creighton Medical Associates, which, over time, would become part of Alegent Health Clinic.

Both Creighton University and Alegent Health have committed to making matching contributions to a shared strategic investment fund to advance their collective academic and clinical missions.

The agreements are expected to be finalized over the summer, after which Alegent will take over the operations of CUMC and Creighton Medical Associates. In the meantime, both Alegent and Creighton will be engaging physicians, operational and administrative personnel in active work groups to create the design, governance and operational aspects of the long-term strategic affiliation.

The three organizations will spend the next several weeks in due diligence reviewing financial documents and other records before moving forward to finalize the agreements.

Finalization of the transaction is subject to the approval of the boards of directors of the parties, negotiation and execution of definitive agreements, and satisfaction of applicable regulatory approvals. The transaction is tentatively expected to close by July 1, 2012.