PEORIA, Ill.—The parent company of 298-bed Methodist Medical Center in Peoria is in talks to join one of the largest health systems in the Midwest, Iowa Health System, Des Moines.
Regional News/Midwest: Methodist Health Services in talks to join Iowa Health System, and other news
In a joint news release, Iowa Health and Methodist Health Services Corp. announced they have signed a non-binding letter of intent to explore affiliation between the two not-for-profit organizations. The transaction would require regulatory approval from the Federal Trade Commission and the Illinois Health Facilities and Services Review Board. Iowa Health runs 10 of its own hospitals and operates another 13 under contract. Methodist Health Services includes one hospital and a network of healthcare provider sites. A spokeswoman for Iowa Health said the affiliation would not involve any exchange of funds or assumption of existing debt on the part of either entity. Under the proposal, Methodist would get three seats on Iowa Health's board of directors, which would expand to 21 members total. The news release said Methodist would retain its local board of directors and would operate under Iowa Health's longstanding philosophy of local control. “The assets of the hospital and health system were created in Peoria and will stay in Peoria,” said Michael Bryant, Methodist Health Services president and CEO.
ROCKFORD, Ill.—Plans announced last May for Ottawa, Ill.-based OSF HealthCare to acquire 293-bed Rockford Memorial Hospital are receiving close antitrust scrutiny by the Federal Trade Commission. The parties reached a definitive agreement this year and received a request for additional information after a Feb. 11 application filed with the FTC under the Hart-Scott-Rodino pre-merger notification process, according to a jointly issued news release, which called the development “not unexpected.” OSF operates 235-bed St. Anthony Medical Center, one of two other Rockford hospitals. The organizations, meanwhile, are seeking clearance from the Illinois Health Facilities and Services Review Board. According to an application the board received March 10, the deal calls for nine-hospital OSF to assume about $100 million of debt from Rockford Health System, which is the parent of Rockford Memorial; a physician group; a home health agency and a rehabilitation hospital jointly owned with HealthSouth. OSF also commits to investing $280 million over the course of eight years into Rockford Health System, which would become OSF Northern Region. Rockford Health System's net asset value was estimated at $212.7 million, according to the application, which may come up for a vote at the board's May meeting. The organizations said in the news release that it would take them “at least a couple of months” to gather the information requested by the FTC, which would then trigger a 30-day review period.
MAYWOOD, Ill.—Trinity Health will pay $100 million to buy Loyola University Health System from Loyola University Chicago as part of a $175 million acquisition price, according to documents submitted to the Illinois Health Facilities and Services Review Board. Loyola University Chicago and Trinity, a Catholic system based in Novi, Mich., announced a letter of intent in March putting the organizations on track toward the deal. (March 7, p. 4) At the time, they disclosed only that Trinity would contribute $75 million toward a $150 million medical research facility to be built on the university's campus in the western Chicago suburb of Maywood. According to the application to the state board, Trinity would also commit to investing at least $300 million into the Loyola facilities over the course of seven years. The planned acquisition includes 535-bed Loyola University Medical Center, as well as 234-bed Gottlieb Memorial Hospital in nearby Melrose Park, an ambulatory surgery center, a dialysis center and Loyola's interests in 28 outpatient care centers. The planning board has not scheduled a vote on the application.
SPRINGFIELD, Mo.—Sisters of Mercy Health System, St. Louis, conducted a groundbreaking ceremony last week for Mercy St. John's Orthopedic Hospital in Springfield, Mo., according to a news release. The project is expected to cost $105 million. The 48-bed hospital will feature eight operating rooms. The local parent system, St. John's Health System, has reached nearly full capacity at its in-hospital operating rooms and outpatient surgery center—with only 3.2% average open block time at the hospital and 3% open time at the surgery center in 2009, according to the release. St. John's is planning to recruit a net increase of 22 surgeons to meet the overall demands for surgery. The hospital also will feature imaging services, on-site pre-admission testing areas and inpatient and outpatient pharmacies to serve hospital and medical office patients. The hospital is expected to open this summer 2013.
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