Rockford (Ill.) Health System signed an agreement to affiliate with seven-hospital OSF Healthcare System, Peoria, Ill.
Two Illinois systems sign affiliation agreement
Terms of the proposed transaction were not disclosed. The two systems said in a news release that Rockford Health and its one acute-care hospital, 293-bed Rockford Memorial Hospital, will be combined with 235-bed OSF St. Anthony Medical Center, Rockford, to form OSF Northern Region, pending federal and state regulatory approval. Rockford Health's president and CEO, Gary Kaatz, will be CEO of the new northern region and David Schertz, OSF St. Anthony's president and CEO, will be chief operating officer if the deal goes through, according to the release.
In addition, the two have committed to keeping the two hospitals open “for the foreseeable future,” said James Farrell, spokesman for OSF. The timetable is uncertain, according to the release.
Among the conditions needed is antitrust approval, and the U.S. Justice Department helped prevent an earlier deal in the city years back. In 1988, Rockford Memorial was set to merge with Rockford's third acute-care provider, 312-bed SwedishAmerican Hospital, but the Justice Department sued to block the deal and a federal judge granted an injunction.
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