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Dignity Health in talks to link with an academic medical center

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The headquarters of Dignity Health.

San Francisco-based Dignity Health has begun talks with an academic medical center (whose name it wouldn’t disclose) in the Bay Area, as it continues merger talks with Catholic Health Initiatives.

Dignity Chief Financial Officer Daniel Morissette  told analysts that  the system is interested in a possible joint venture with an academic medical center because it would benefit Dignity’s four hospitals in the Bay Area by having a teaching hospital connected with them.

He told analysts that two of Dignity’s hospitals in the area were profitable and two were “challenged.” By connecting with an academic medical center,  the hospitals would be part of a bigger provider network to seek contracts and improve performance, he explained.

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