Northwestern Memorial adds more than 900 doctors through affiliation

(This article has been updated with a correction.)

Northwestern Memorial HealthCare, one of the biggest players in the Chicago healthcare market, added the 926 physicians of the Northwestern Medical Faculty Foundation to the system's ranks.

The deal, effective Sept. 1, calls for a $167,000 research grant to Northwestern University and ongoing funding for a clinical development program, according to a note in a financial report to the not-for-profit system's bondholders. The support for the clinical development program will consist of 0.5% of net patient service revenue, as well as 10% of an operating margin up to 5% and 20% of a margin that exceeds 5%.

“The vitality of Northwestern University Feinberg School of Medicine is dependent upon a financially stable clinical enterprise,” Dr. Eric Neilson, dean of the University's Feinberg School of Medicine said in a news release.

The faculty foundation physicians will join the members of the smaller Northwestern Memorial Physicians Group and Chicago Lake Shore Medical Associates to form Northwestern Medical Group.

Dr. David Mahvi, Northwestern Memorial's chief of gastrointestinal and oncologic surgery, was named president of the medical group.

Not-for-profit Northwestern Memorial HealthCare includes the 868-bed Northwestern Memorial Hospital near Chicago's lakefront downtown, as well as Lake Forest (Ill.) Hospital, a 133-bed facility serving the city's northern suburbs.

The system reported $88.3 million in operating income on $1.7 billion in revenue for its fiscal 2012, ended Aug. 31.

(This article has been updated to indicate thaf the Northwestern Medical Faculty Foundation included 926 physicians.)