Alexian Brothers Health System, which has an array of Chattanooga-area facilities employing about 750 people, has agreed to merge with the nation's largest Catholic-owned medical care provider.
Ascension Health, operator of both St. Thomas Hospital and Baptist Hospital in Nashville, has signed a nonbinding letter of intent to acquire Alexian, according to the entities.
In the Chattanooga area, Alexian traces its Roman Catholic roots to 1936 on Signal Mountain where it set up a retreat and training center.
Now, the suburban Chicago-based Alexian has a number of interdependent offerings providing residential and community-based retirement services in the region ranging from home health care to senior apartments to a skilled nursing home.
Matt Fox, chief executive of Alexian Village here, said Friday he expects little immediate impact on local operations from the proposed merger.
"It's more a strategic move to prepare for the future," he said. "With health care reform, it affords a little more protection being part of a large group."
Locally, Fox said, the merger will give Alexian access to capital and opportunity.
About 500 people live in Alexian facilities in the region, he said.
Ascension spokeswoman Trudy Hamilton said the St. Louis-based nonprofit and Alexian are aiming to close the deal by year's end. Ascension employs about 113,000 people in more than 500 sites in 20 states and in Washington, D.C.
Mark A. Frey, executive vice president of Alexian Brothers Health System, termed the proposed partnership "a significant step forward" in the evolution of the organization.
"This partnership is a sign of Alexian Brothers Health System's commitment to ensure that everyone in the communities we serve will continue to receive the highest level of care for the long term," he said in a statement.
Frey said the agreement with Ascension provides Alexian with the resources needed to grow as health care changes.
"Ascension Health shares our commitment to patient-centered care, to charity care and to strengthening Catholic health care nationwide," said Frey.
Anthony R. Tersigni, Ascension's chief executive, said Alexian has demonstrated a dedication to serving all with special attention to the poor and vulnerable.
He said Ascension is "very enthusiastic about the prospect of helping them continue their vital ministry for generations to come."
Ascension said it provided more than $1.1 billion in care to the poor and in community benefits in 2010.
Alexian has operations in Illinois, Wisconsin and Missouri.
Terms of the deal were not announced.