Business Roundup: Cadence Health, Rockford Health System to Merge

The week's largest healthcare deal announcement involves the largest health system in northwestern Illinois. Other news of merger talks comes from central New York state and Wisconsin.

Northern Illinois' Cadence Health and Rockford Health System have jointly announced that they're in merger talks.

"The Rockford Health System Board of Directors has engaged in a deliberate, comprehensive and strategic process to identify a partner to further strengthen the clinical services we provide to Rockford and the region," RHS CEO/President Gary Kaatz said in prepared remarks. "Cadence and Rockford Health System match up on all criteria, including commitment to local governance, superior clinical services and best practices, and a focus on community benefit."

RHS and Winfield, IL-based Cadence will spend the "next several months" refining the partnership, which would be subjected to regulatory review and approval.

Cadence CEO/President Mike Vivoda called the two health systems "like-minded organizations, both with a singular vision of providing excellent patient care with outstanding clinical outcomes guided by the highest standards of quality and safety. Together, we can build a leading multi-regional health system that meaningfully improves access to care, elevates quality, and lowers cost to deliver the best care and value to the communities we serve."

RHS is the largest health system in northwestern Illinois and southern Wisconsin, with nearly 1 million patient visits each year. The system includes: Rockford Memorial Hospital, a regional, tertiary care hospital with 396 licensed beds and a medical staff of more than 440 physicians; the Rockford Health Physicians physician group with 168 physicians in 34 medical specialties; the Visiting Nurses Association, providing home care, hospice and medical equipment; its fundraising arm, the Rockford Memorial Development Foundation; and Van Matre HealthSouth Rehabilitation Hospital, a 55-bed freestanding rehabilitation hospital.

Cadence provides healthcare to the more than 1.1 million patients in Chicago's western suburbs. The system was formed in March 2011 as a result of the merger between Central DuPage Health System based in Winfield, and Delnor Community Health System based in Geneva, IL. Cadence Health employs more than 7,400 people and includes Cadence Physician Group, a local network of more than 250 primary care physicians and specialists on the medical staff at CDH or Delnor Hospital.

Rome (NY) Memorial Hospital Explores Collaboration with Bassett Medical Center
Rome (NY) Memorial Hospital and Bassett Medical Center said they have signed a non-binding letter of intent to develop a collaborative relationship. Now the two health systems will open a due diligence process of at least six months to finalize an agreement that would enable RMH to become a corporate affiliate of Bassett while remaining an operationally distinct hospital with local autonomy, RMH President/CEO Basil J. Ariglio said in prepared remarks.

"Two years ago, our Board of Trustees made the decision to explore opportunities to collaborate with other organizations to prepare for the changing healthcare environment," Ariglio said. "We developed specific community objectives based upon feedback from a cross-section of community constituencies and initiated discussions with several organizations."

Ariglio said the RMH board voted unanimously to pursue the collaborative with Bassett "because we share a common vision of what's necessary to improve the delivery of healthcare services in our region. Establishing a relationship with Bassett will also help Rome expand primary care access and address physician shortages.

Bassett President/CEO William F. Streck, MD, said an affiliation would come as healthcare delivery evolves into the new reimbursement models that reward population health outcomes and value over volume. An affiliation would give RMS and Bassett opportunities to exchange best practices that reduce costs and provide better outcomes for patients.

Bassett Healthcare Network is an integrated health care system serving an eight-county region covering 5,000 square miles in upstate New York. Bassett includes six corporately affiliated hospitals, skilled nursing facilities, health centers and health partners in related fields. With 130-licensed acute care beds, RMH would become the second largest hospital in the Bassett system. RMH has its own 80-bed skilled nursing facility and affiliated primary and specialty physician practices.

UW Health and Aurora Health Care Announce Collaborative Talks
UW Health and Aurora Health Care say they are discussing how the two integrated health systems can work together using accountable care concepts to improve healthcare delivery and lower costs for Wisconsin and the region.

Talks will include ideas for enhancing the mission of the UW School of Medicine and Public Health, which has had a 30-year partnership in medical education with Aurora. Both systems said in a media release that they can build on their collective strengths in clinical quality healthcare that is among the most cost effective in Wisconsin and a commitment to enhancing the health of populations.