(Updated with comments at 6 p.m. ET.)
Eighteen months after abandoning a deal rather than fight the Federal Trade Commission, Rockford (Ill.) Health System has an agreement to be acquired by a new partner: Cadence Health, a two-hospital system west of Chicago.
Rockford worked with consulting firm Navigant for the past year and selected Cadence among nine bidders after narrowing a broader field of suitors. “We had a great deal of interest, probably more interest than we anticipated—and we anticipated a lot of interest,” said Gary Kaatz, Rockford's president and CEO. “We loved their culture focused on performance.”
The union would expand Cadence's reach to more than 40 locations in the region, as well as increase its clinical offerings and improve efficiencies in delivering care, according to a news release. Kaatz said that Rockford is seeking a larger footprint to benefit from economies of scale and develop the framework for population health management. Terms were not disclosed.