The Illinois state health facilities board today approved two hospital merger deals intended to reshape the landscape of healthcare in the suburbs.
The Illinois Health Facilities and Services Review Board voted 8-0 to approve the merger between Elgin-based Sherman Health Systems and Advocate Health Care, already the largest hospital network in the state. The deal is expected to close June 1.
The board also approved Edward Health Services Corp.'s acquisition of Elmhurst Memorial Healthcare, also by an 8-0 vote. The Edward-Elmhurst transaction is expected to close by July 1.
Advocate and Sherman signed a letter of intent to merge in October, striking a final agreement in April.
The board must approve transactions that change the ownership of health care facilities.
A spokeswoman for Advocate said in an email that no additional regulatory approval is needed. As part of the merger process, the health systems filed applications with the Federal Trade Commission and U.S. Department of Justice to demonstrate compliance with the federal anti-trust. The merger raised no red flags with either agency, allowing the deal to proceed.
Rick Jakle, chairman of the Sherman Health, said in a press release, “Sherman's 125-year history of providing quality care and service to our community will only be enhanced by Advocate's nationally recognized name and best practices.”
Naperville-based Edward and Elmhurst signed a letter of intent in January and a final merger agreement in April. The combined system's $1 billion in revenue would make it one of the largest in the Chicago area.
"State health board approves two hospital mergers" originally appeared in Crain's Chicago Business.
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