The letter of intent comes about a month after the two systems formed a partnership called the Precision Medicine Alliance LLC, which will create the largest community-based precision medicine program in the United States.

The two organizations said they complement one another “in many other important ways.” CHI has a diverse geographic footprint with proven clinical service lines and home-health capabilities, along with partnerships in education and research. Dignity Health has an operating model that has scaled enterprise-wide initiatives to ensure consistent practices, and it is known for its delivery partnerships. They said both systems include Catholic and non-Catholic health care affiliates. Both offer charitable care and services, which totaled $3.8 billion in 2015.


The Wall Street Journal reported that CHI has more recently had “weak or negative operating margins after a push into health insurance stalled and hospital operations "struggled,” following several acquisitions. WSJ noted that CHI has previously said it was considering selling some or all of its insurance operations.

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