Both leaders agreed that a merger was necessary to improve patient outcomes for communities on the South Side.
Executives from two of the four hospitals on the South Side of Chicago that recently announced merger plans say the move was prompted by pressing financial and clinical needs.
Last week, four hospitals in South Chicago signed a nonbinding merger agreement to form an "independent, integrated healthcare system," with investments from each provider totaling $1.1 billion.
The organizations include: Advocate Trinity Hospital, (a member of Advocate Aurora Health), Mercy Hospital & Medical Center, (a member of Trinity Health), South Shore Hospital, and St. Bernard Hospital.
The new combined organization will be led by a new chief executive officer and an independent board of directors comprised of representatives from each hospital.
Related: Four Chicago Hospitals Announce Merger Plans
In an interview with HealthLeaders, Carol Schneider, president of Mercy Hospital & Medical Center, said the status quo "is not sustainable," which prompted Mercy and the three other hospitals to look at a merger.
"Despite all the best efforts of the clinicians, the four hospitals, and the local community investment, we just cannot continue to provide the kind of care with the cost structures that we have," Schneider said. "[We cannot] have our residents face significantly lower life expectancies and other things that clearly show disparities in healthcare on the South Side."
Related: Tenet Sells Its Last 3 Chicagoland Hospitals
Rashard Johnson, president of Advocate Trinity Hospital, told HealthLeaders that one issue that spurred his organization to act was the 30-year life expectancy gap in Chicago, among the largest in the country, according to research from NYU Langone Health.
Johnson said such a disparity was "unconscionable" and required hospital leadership to examine options to improve healthcare access for the community along with patient outcomes.
"I would like to make sure that our colleagues and constituents know that this [merger] addresses the social determinants of health including food insecurity, housing, transportation, and trauma," Johnson said. "Quite frankly, what we're currently doing and how we're operating is just unsustainable, so the need to transform is now."
A definitive merger agreement is expected to be signed by all four hospitals by mid-2020.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.