What started two years ago as a possible four-hospital network in Illinois' DuPage County is down to two hospitals that have agreed to explore a consolidation.
Central DuPage Hospital in Winfield and Edward Hospital in Naperville have signed a memorandum of understanding stating they will engage in exclusive discussions to "explore a merger, consolidation or affiliation of the two healthcare systems."
Combined, Edward and Central DuPage have more than $330 million in assets. Central DuPage had net income of $24.9 million on net revenues of $164.6 million in 1994, the latest year for which financial data was available from HCIA, a Baltimore-based healthcare information company. Edward had net income of $6.7 million on net revenues of $104.9 million in 1994, HCIA said.
Two other hospitals originally involved in a KPMG Peat Marwick study designed to explore the network have moved on to other systems.
La Grange (Ill.) Memorial Hospital was acquired by Columbia/HCA Healthcare Corp. Meanwhile, Elmhurst (Ill.) Memorial Hospital is considering a link with either Northwestern Healthcare or Advocate Health Care. Elmhurst plans to make a decision in March on which Chicago-area network it will join. Executives wouldn't comment on the scope of those discussions.
In other Chicago-area healthcare news, the Illinois Health Facilities Planning Board allowed Saint Cabrini Hospital on Chicago's West Side to go through with its closure. Citing competition from neighboring hospitals in the bed-bloated Chicago-area healthcare market, Cabrini transferred its last three patients to its sister facility, Saint Anthony Hospital, on Jan. 19. In 1994, Saint Cabrini lost $1.7 million on net revenues of $33.3 million.
"With the dramatic changes in healthcare, we struggle with how to best serve our communities within the limited resources available to us," said Lee Domanico, executive vice president and chief operating officer of Catholic Health Partners, formed last year through the merger of Columbus-Cabrini Health System and Saint Joseph Health Centers and Hospital.
"We looked at this situation (and) decided that the best way to continue to serve the communities on the city's West Side was to consolidate our services at Saint Anthony Hospital," he said.