Northwestern Memorial HealthCare in Chicago and Cadence Health in Winfield, Ill., have signed a letter of intent to merge, marking Cadence's second attempt to attract a partner.
Under the deal, Northwestern Medicine would be the parent organization of the four-hospital network. The hospitals include Northwestern Memorial Hospital, an 894-bed academic medical center that would serve as the flagship, Northwestern Lake Forest (Ill.) Hospital, Central DuPage Hospital in Winfield and Delnor Hospital in Geneva, Ill.
Northwestern President and CEO Dean Harrison and Cadence President and CEO Mike Vivoda both said the potential merger would create a high-quality regional health system with comprehensive services and a strong academic and research foundation. Mr. Harrison would serve as CEO of the combined system, while Mr. Vivoda would become regional president.
Financial terms and other details of the deal were not disclosed. Both health systems will now undergo due diligence. No timeline has been set for a definitive agreement.
In January, Cadence and Rockford (Ill.) Health System ended merger discussions after executives said there were "differences" in strategic and operational planning. Cadence formed in 2011 after Central DuPage Health and Delnor Health System agreed to merge.
A combined Northwestern-Cadence system would have almost $3 billion in total revenue, according to the latest data.
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