The Illinois Health Facilities and Services Review Board has approved two separate health system merger proposals.
Elgin-based Sherman Health earned the board's approval to merge into Downers Grove-based, 10-hospital system Advocate Health Care, the state's largest health system. The deal, expected to close June 1, will integrate Sherman Hospital and its other facilities over a two-year period, changing the hospital's name to Advocate Sherman Hospital and adding the Advocate name to the other locations.
Sherman selected Advocate as its buyer in October 2012 in hopes of improving quality, reducing operating and capital expenses and aiding the transition to value-based care delivery. Financial details were not disclosed.
The second approved deal will merge Naperville-based, two-hospital system Edward Hospital & Health Services and Elmhurst (Ill.) Memorial Healthcare into a non-profit system, expected to take effect July 1. The newly formed system, to be named after the closing, will have estimated annual revenues of $1 billion with more than 50 locations.
The system will be governed by a 13-member community board of trustees, eight appointed by Edward and five by Elmhurst Memorial. Edward CEO Pam Davis will become CEO of the merged system.
Memorial Medical Center in Michigan Signs Letter to Join Spectrum Health
6 Recent Hospital Mergers and Acquisitions
Elgin-based Sherman Health earned the board's approval to merge into Downers Grove-based, 10-hospital system Advocate Health Care, the state's largest health system. The deal, expected to close June 1, will integrate Sherman Hospital and its other facilities over a two-year period, changing the hospital's name to Advocate Sherman Hospital and adding the Advocate name to the other locations.
Sherman selected Advocate as its buyer in October 2012 in hopes of improving quality, reducing operating and capital expenses and aiding the transition to value-based care delivery. Financial details were not disclosed.
The second approved deal will merge Naperville-based, two-hospital system Edward Hospital & Health Services and Elmhurst (Ill.) Memorial Healthcare into a non-profit system, expected to take effect July 1. The newly formed system, to be named after the closing, will have estimated annual revenues of $1 billion with more than 50 locations.
The system will be governed by a 13-member community board of trustees, eight appointed by Edward and five by Elmhurst Memorial. Edward CEO Pam Davis will become CEO of the merged system.
More Articles on Hospital Mergers:
Private Equity Deals in Healthcare Have More Than Doubled Since 2009, Report SaysMemorial Medical Center in Michigan Signs Letter to Join Spectrum Health
6 Recent Hospital Mergers and Acquisitions