Northwestern Memorial HealthCare in Chicago is paying nearly $350 million to acquire the faculty practice of Northwestern University.
The system, anchored by 868-bed Northwestern Memorial Hospital, agreed to pay $230.5 million upfront plus annual payments totaling at least $118.5 million through 2016 to acquire the 900-doctor Northwestern Medical Faculty Foundation, according to a notice to bondholders.
“You normally don’t see nine-figure transactions involving physician practices,” said Adam Lynch, vice president at Chicago-based Principle Valuation, a healthcare appraisal firm. “You’re not going to find many as big as NMFF, so you’re not going to see a price close to what they’re negotiating.”
The terms were not disclosed when Northwestern Memorial CEO Dean Harrison and Dr. Eric Neilson, CEO of NMFF and dean of Northwestern University’s Feinberg School of Medicine, jointly announced in March their intention to merge the faculty foundation with the system’s physicians group.
