The University of South Alabama announced Providence Hospital and its clinics are now part of USA Health, the university’s academic health system. It will now be called USA Health Providence Hospital.

USA Health has worked on the acquisition for almost six months, in a deal that was estimated to cost $85 million. Providence’s previous owner, Ascension Health, posted a $2.7 billion loss in the last fiscal year, iciting rising costs to operate multiple facilities across 19 states.

The acquisition includes Providence’s 349-bed hospital, eight clinics on the hospital campus, and six family practice sites in west and north Mobile and Moss Point, Mississippi, increasing the number of USA Health’s locations from 29 to 44. An estimated 1,800 Providence associates, physicians and other providers are now part of USA Health, the only academic health system along the upper Gulf Coast.

Supporters of the acquisition say it will provide more options for patients.

“We already share core values and a commitment to provide compassionate care to those who need it most,” University of South Alabama President Josiah Bonner said.

“With your help, we will build upon our reputation for providing exceptional healthcare, education and research that transforms medicine in the Gulf Coast region.”

USA Health and Providence hope for a seamless transition for patients, physicians and associates. The system says there will be no disruption in services or procedures.