2 Chicago-Area Catholic Health Systems to Merge
The six-hospital Provena Health and the six-hospital Resurrection Health Care have reached a definitive agreement to merge. The two signed a letter of intent in February 2011 to explore merge opportunities. No financial details were disclosed.
With more than 100 sites in Illinois and Indiana, the merged Provena-Resurrection will be one of the largest health systems in Illinois. The merger will create a 12-hospital system with more than 3,600 beds, almost 23,000 employees and a medical staff of more than 4,900. It will include 28 long-term care and senior residential facilities, more than 50 primary care and specialty care clinics and six home health agencies. The new system will have combined operating revenues of $2.7 billion.
Still, the 10-hospital Advocate Health Care with more than $4.5 billion in operating revenue in 2010 is expected to remain the dominate system in the Chicago area. According to articles in the Chicago Tribune, Advocate has embarked on a series of mergers and acquisitions to strengthen its market position. It is considering a merger with Sherman Hospital in Elgin. Advocate is also shoring up its physician alignments. The 800-physician Advocate Medical Group announced in June its merger with the 50-physician Midwest Heart Specialists.
James Unland, president of the Chicago-based Health Capital Group, which helps with mergers, acquisitions and reorganizations, sees the deal as part of a potential statewide move by the merged health systems. He points to the OSF Saint Francis Medical Center in Peoria as a possible acquisition target for the newly merged Provena and Resurrection health systems.