Like a college graduate finding out life away from mom and dad is tougher than anticipated, Hinsdale (Ill.) Health System is considering joining Orlando, Fla.-based Adventist Health System-Sunbelt after seven years on its own.
The two systems were part of the national Adventist Health System, which dissolved in 1990 after it was unable to turn its regional divisions into a cohesive national unit.
The three hospitals in the Hinsdale system, led by 449-bed Hinsdale Hospital, were the first to leave. The remaining Adventist hospitals broke into eight regional companies, the largest being Adventist-Sunbelt with 18 hospitals in six Southern states.
The Hinsdale system and Adventist-Sunbelt now are negotiating a merger that could be completed by mid-May. A Hinsdale spokeswoman said last week the companies received notice of antitrust clearance from the Federal Trade Commission, but she declined to release further details. She also said the proposal hadn't been announced to the Hinsdale community.
Three years ago, a power struggle took place between the boards of Hinsdale Hospital and the overall system. The profitable hospital didn't want its assets used in other parts of the system, according to news reports. The battle ended with the resignations of both organizations' heads and the appointment of a single executive to fill their roles.
Hinsdale Hospital reported operating income of $11.7 million on operating revenues of $174.7 million in 1995, according to HCIA, a Baltimore-based healthcare information company.
By comparison, the Hinsdale system earned $2.7 million on operating revenues of $210 million, according to Moody's Investors Service, a New York-based bond-rating agency.
All three hospitals, however, are showing declining operating earnings in the face of managed-care pressure, according to Moody's, which assigned a negative outlook to Hinsdale system bonds in February.
The system's other hospitals are 186-bed GlenOaks Hospital and Medical Center in Glendale Heights, Ill., and 30-bed Chippewa Valley Hospital in Durand, Wis.
Adventist-Sunbelt, meanwhile, had operating income of $72.3 million on net patient revenues of $1.2 billion in 1995, making it the 20th-largest U.S. health system and the largest non-Catholic religious system, according to the 1996 MODERN HEALTHCARE Multi-unit Providers Survey. The Adventist hospitals are owned by the Seventh-day Adventist Church in Washington.