State regulators have approved the acquisition of two-hospital BroMenn Healthcare System, Normal, Ill., by Advocate Health Care, which has nine hospitals in Chicago and its suburbs.
Ill. officials OK Advocate's acquisition of BroMenn
Advocate and BroMenn started talks nearly a year ago and recently applied for permission for a change of ownership from the Illinois Health Facilities and Services Review Board. BroMenn, located toward the middle of the state, about 125 miles from Chicago, would be Advocate's first hospital outside the metropolitan area. According to the filing with the state, Advocate intends to assume all of BroMenn's assets and liabilities with no purchase price, with a planned closing date Jan. 1, 2010. The state board's staff report says the hospitals have a combined book value of $86 million, though it notes a fair-market value assessment had not been conducted.
BroMenn is made up of 213-bed BroMenn Regional Medical Center; 25-bed Eureka (Ill.) Community Hospital; BroMenn Physicians Management Corp., which comprises 11 practices; and BroMenn Provider Network, a physician-hospital organization. The BroMenn hospitals, for the fiscal year ended June 30, 2008, recorded income of $18.9 million on revenue of $186.1 million on their Form 990 filing with the Internal Revenue Service.
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