Three Roman Catholic healthcare systems in Illinois have agreed to merge into a seven-hospital system with nearly $1 billion in total assets.
The deal will consolidate Franciscan Sisters Health Care Corp., Frankfort, Ill.; Mercy Center for Health Care Services, Aurora, Ill.; and ServantCor, Kankakee, Ill. The systems announced a formal agreement last week, five months after signing a letter of intent (March 10, p. 24).
"It's a full-asset merger to create a new entity," said Jeanne Larson, a Mercy spokeswoman.
Combined, the three systems had net income of $47 million on revenues of $675 million in 1996. The hospitals are in suburban Chicago and central Illinois.
Religious sponsors of two of the three systems have signed off on the deal. It still must be approved by ServantCor's sponsor, the international community of the Servants of the Holy Heart of Mary in Montreal. The local order in Kankakee has approved the deal.
The merger is expected to be completed by the end of October after it gains federal antitrust approvals and a name for the new system is selected.
Executives said other hospitals and health systems may join in the future. "There's certainly interest in expanding, but there's nothing currently in the works," said Stuart Fulks, a ServantCor spokesman.