The two-hospital Cadence and one-hospital Rockford signed a letter of intent to combine their organizations in November. Both health systems have been conducting due diligence since then. Rockford President and CEO Gary Kaatz and Cadence President and CEO Mike Vivoda said both organizations shared many “similar commitments,” such as clinical quality, patient safety and cost-effective care.
Leaders did not divulge specific reasons for why a definitive merger deal wasn’t reached, other than “differences” in strategic and operational planning.
“However, as we moved forward in our discussions it became clear that we would not be able to arrive at an agreement that would provide mutual benefit to both the Rockford community and to the Cadence organization,” Mr. Kaatz said in a news release. “After deeper review, we recognized that our strategic imperatives did not align.”
In April 2012, Rockford canceled a planned merger with OSF HealthCare in Peoria, Ill. The Federal Trade Commission challenged the deal, claiming the reduction in competition in the Rockford area would lead to higher costs. Consequently, Rockford and OSF officials decided to halt the deal with “great reluctance.”
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