The Illinois Health Facilities and Services Review Board released the letter of intent to the public, which outlined Sherman’s plan to refinance its debt with Advocate’s strong balance sheet. Advocate, the state’s largest health network with 11 facilities and $4.6 billion in revenue last year, beat out Winfield, Ill.-based Cadence Health for Sherman’s merger agreement, which has yet to be finalized, according to the report.
Advocate’s investment would include $60 million to routine capital replacement, and the other $140 million could be used to acquire physicians’ groups, expand service lines and cover other capital and operating expenses. In addition, Advocate would agree to no layoffs at Sherman for six months.
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