The mega-merger between two Midwestern health systems received clearance from Wisconsin state regulators and is slated to close officially April 1.
The Wisconsin Office of the Commissioner of Insurance cleared the deal one month after Illinois state regulators and the Federal Trade Commission approved the proposal. The merger between Chicago-based Advocate and Milwaukee-based Aurora would create the 10th largest health system in the U.S., with a projected $11 billion in operating revenue.
“We’re full steam ahead,” said Jim Skogsbergh, president and CEO of Advocate, in a joint press release. “A team of leaders from both systems have developed a comprehensive integration plan that will allow us to accelerate our efforts on safety, health outcomes, consumer experience and cost while delivering value for the patients, communities and employers who count on us.”
“Our merger represents a tremendous opportunity to elevate the strengths of two great organizations to shape a better future for those we serve,” said Nick Turkal, MD, president and CEO of Aurora. “We are excited to move forward on our commitment to leading the change and building a model of health care that is truly transformational.”
Turkal and Skogsbergh were named co-CEOs of the new company: Advocate Aurora Health, which will operate with a “50-50” structure. This is intended to allow both systems to forgo layoffs and organize a board of directors composed of an equal number of executives from Advocate and Aurora.
In total, the joint company is expected to employ 70,000 people across hundreds of facilities and 27 hospitals.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.