CommonSpirit Health and Altru Health System are considering a deal to transfer three North Dakota hospitals to the latter, the organizations announced Thursday.
The pair’s signed letter of intent outlines plans to evaluate a potential deal for the facilities, a process they said would run “the next several months” before a potential definitive agreement might be struck.
In the balance are CHI St. Alexius Health Bismarck, a multispecialty acute care medical center in the state’s capital, and two smaller critical access hospitals, CHI St. Alexius Health Turtle Lake and CHI St. Alexius Health Garrison. All three are Catholic facilities within CommonSpirit’s regional healthcare system CHI St. Alexius Health.
Potential financial terms of any deal for the hospitals were not disclosed, nor were any details on whether other assets tied to the hospitals, such as clinics, would be included.
“This is a natural next step in exploring how we can continue to support strong, sustainable healthcare for the region,” Tim Bricker, president of CommonSpirit Health’s central region, which includes CHI St. Alexius Health, said in the announcement.
CommonSpirit is a $40 billion nonprofit that counted 137 hospitals in two dozen states. It’s in the midst of an operating performance turnaround initiative and, at this month’s J.P. Morgan Healthcare Conference, teased “a couple” of portfolio divestitures to be announced in the next quarter as part of the effort.
Grand Forks, North Dakota-based Altru Health System is a smaller nonprofit, with just over $700 million of revenue in 2024 from its sole acute care hospital, a specialty hospital and 20 practice locations in northeast North Dakota and northwest Minnesota. It opened a new $500 million hospital in January 2025.
The news comes hot on the heels of another deal between the systems for ownership of CHI St. Alexius Health Devils Lake, another critical access hospital. That handoff was unveiled in December and is set to close March 1.
Both deals have been described as a boon for rural communities and an opportunity for Altru to better coordinate its local care.
“Altru has a long history of serving communities across North Dakota and northwest Minnesota, and our organizations share a deep respect for the people we serve and the responsibility that comes with delivering local healthcare,” Todd Forkel, CEO of Altru, said in the announcement. “We look forward to working more closely with CommonSpirit to strengthen access to care for patients and families well into the future.”