Southern Illinois Healthcare is on the verge of acquiring its fourth and fifth hospitals, giving the system substantial presence in an eight-county area in downstate Illinois.
The Carbondale, Ill.-based not-for-profit system this month signed agreements to acquire 51-bed Ferrell Hospital, an investor-owned facility in Eldorado, Ill., and 34-bed United Mine Workers of America Union Hospital, a not-for-profit community facility in West Frankfort, Ill. Terms of the deals weren't disclosed.
The mergers would give SIH nearly $100 million in annual revenues, according to the hospitals' 1995 financial data. The system would have $156 million in assets.
"We're trying to get ourselves positioned for managed care, and these communities have asked for us," said John Buckley Jr., president and chief executive officer of SIH.
United Mine Workers officials said they wanted to pursue an acquisition because they were pleased with SIH's management of their hospital for the past 12 months. "Acquisition of the hospital by SIH is the logical next step for us to continue improving healthcare services to our community," said Leo Grotti, chairman of the hospital's board of directors.
Meanwhile, SIH's agreement with Ferrell's parent, Ferrell Enterprises, includes an acquisition of Doctors Clinic in Eldorado. SIH and Ferrell expect to complete the deal by Sept. 30, said Albert Bledig, M.D., chairman of Ferrell Enterprises, which is owned and operated by Eldorado area physicians.
SIH's other hospitals are St. Joseph Memorial Hospital in Murphysboro, Ill.; Herrin (Ill.) Hospital; and Memorial Hospital of Carbondale. The system reported net operating income of $4.3 million on net patient revenues of $79.4 million in 1995, according to MODERN HEALTHCARE's 1996 Multi-unit Providers Survey.