Two Catholic healthcare systems are dancing the consolidation jig after recent deals in the Midwest helped them sew up bigger market share.
One system, seven-hospital Provena Health based in Frankfort, Ill., has formed a joint operating company with one Illinois hospital and has a similar deal pending with another.
Another system, Sisters of St. Francis Health Services, Mishawaka, Ind., recently completed a hospital swap for a 248-bed facility in Crown Point, Ind.
Provena's 409-bed Provena Saint Joseph Medical Center, Joliet, Ill., created a joint operating company with nearby 82-bed Morris (Ill.) Hospital.
The deal, effective March 14, created Provena Saint Joseph/Morris Health Network. The new not-for-profit company is jointly sponsored by Provena and Morris.
Cliff Corbett, Morris' president and chief executive officer, said his stand-alone hospital had been looking to take advantage of the benefits of being in a big system.
The other Joliet hospital, 228-bed Silver Cross Hospital, is part of Chicago-based Northwestern Healthcare Network.
In another deal, Provena is nearing completion of a joint operating agreement between its 254-bed Provena Saint Therese Medical Center, Waukegan, Ill., and 171-bed Victory Memorial Hospital, the only other hospital in Waukegan.
Provena Saint Therese filed for federal antitrust clearance in January, and the Federal Trade Commission didn't challenge the deal to create a new joint operating company, said Larry Stanley, a Provena Saint Therese spokesman.
Before the new company is formed, the hospitals, both not-for-profit, are waiting for a final determination from the Internal Revenue Service on the tax status of the new company, which they intend to operate as a not-for-profit, Stanley said.
The hospitals also have filed for exemption from certificate-of-need review by the Illinois Health Facilities Planning Board.
In Indiana, a hospital swap was completed March 1 between the Mishawaka-based Sisters of St. Francis Health Services and Highland-based Franciscan Sisters of Chicago Service Corp., a Franciscan Sisters spokeswoman said.
The deal, which involved 248-bed St. Anthony Medical Center, makes the Sisters of St. Francis the sole hospital provider in Crown Point, according to the AHA Guide, a directory produced by the American Hospital Association.
In the swap, the Sisters of St. Francis gave the Franciscan Sisters three nursing homes, an assisted-living facility and an undisclosed amount of cash (Nov. 16, 1998, p. 21).