2 Chicago-Area Catholic Health Systems to Merge
Unland views the merger as strengthening both systems in the bond market, which could make capital development funds available to their facilities.
The state-required certificate-of-need application for the Provena-Resurrection merger was filed on Tuesday morning with the Illinois Health Facilities Services Review Board. A specific timeline has not been developed for the review, which will include a public hearing.
Courtney Avery, administrator for the IHFS board, estimates that a vote could come at the board's Oct. 12 meeting. Because of the size of the merger, the Illinois Attorney General' office is also expected to conduct a review.
In a telephone conversation Brian Campbell, senior vice president for public affairs at Resurrection termed the deal a "merger of equals." He said Provena and Resurrection will merge into a single system with a new name. The new system's CEO has not yet been named. It is unknown if Sandra Bruce or Guy R. Wiebking, the CEOs and presidents of Resurrection Health Care and Provena Health, respectively, will be considered to head the merged system. The CEO will be named by the five sponsoring religious congregations.
In recent reports Moody's Investors Service has noted that Provena and Resurrection and have each struggled with volume declines related to the economy and that physician relationships have been a trouble spot for both systems. Physician alignments and their referral streams are of growing importance as healthcare reform is implemented.
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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