June 2012

CHI, Immanuel Sign Letter of Intent

CHI and Immanuel, which established a partnership in Omaha under the name Alegent Health in 1996, have signed a letter of intent (LOI) under which CHI will become sole sponsor of Alegent Health. This follows a decision by the Immanuel Board of Directors to focus its ministry on senior care programs and other community health and service activities. Immanuel owns and operates five independent and assisted living retirement campuses in Omaha, Papillion and Lincoln, NE, and Immanuel Pathways in Council Bluffs, IA. More information is available at www.immanuelcommunities.com.

Under the terms of the letter of intent, Immanuel will resign its membership and governance role in Alegent, leaving CHI as the sole member and sponsor.

Immanuel Medical Center will remain in operation throughout the transaction and will continue to serve area residents under CHI’s sponsorship.

CHI will establish a strategic collaboration with Immanuel, allowing Immanuel to expand senior housing and other health services for seniors and address additional community needs throughout Nebraska and Iowa, including skilled nursing, assisted living, adult day care, senior wellness and Programs for All-Inclusive Care of the Elderly (PACE). Details of the collaboration are under development.

The decision by the Immanuel Board to resign its membership and governance role in Alegent followed a discernment and strategic planning process that highlighted the need for senior services. Immanuel and CHI leaders expect to complete the transaction and plans for the senior care collaboration by the end of the calendar year.

“Immanuel and CHI share a strong heritage and common purpose of serving the health needs of people and communities we serve,” said Kevin Lofton, president and CEO of CHI. “We have been blessed as partners in sponsoring Alegent Health in the past. We applaud Immanuel’s courageous decision to meet the unmet needs of seniors and their families.

“We look forward to working with Alegent Health with a sense of excitement and great possibilities,” Lofton said. “Alegent will have unlimited access to the services of a nationally recognized health system, including population health management; leading clinical practices;  the CHI Institute for Research and Innovation; and industry-best practices, such as insurance and risk management, and proven methods to reduce infrastructure expenses.

“We also look forward to partnering with Creighton to help educate the next generation of providers and expanding education and research opportunities throughout the country,” added Lofton. Alegent Health and Creighton recently announced a long-term strategic affiliation, which includes the planned acquisition of Creighton University Medical Center from Creighton University and its clinical partner Tenet Healthcare.

The decision by Immanuel reflects a growing national trend toward specialization and consolidation in the wake of national health reform. While Immanuel will improve and expand its senior services in Nebraska and Iowa, CHI will bring national resources and expertise to an already strong regional health delivery system, which now includes acute-care facilities in Nebraska and Iowa.