Mercy Health System, a three-hospital, not-for-profit based in Janesville, Wis., and Rockford (Ill.) Health System, a two-hospital not-for-profit, will merge to create a new system serving northern Illinois and southern Wisconsin.
Though the two organizations will keep their respective names, their five combined hospitals, over 550 physicians and 80 other facilities have been folded into a new parent company, yet to be named. Mercy Health President and CEO Javon Bea will become CEO of the new entity while continuing to serve as Mercy's CEO. Gary Kaatz, Rockford's president and CEO, also will retain his current title.
No cash is being exchanged in the deal, which took place Oct. 23 and was announced the following week. Bea told Modern Healthcare that the two systems will complement each other, since Rockford's regional children's hospital has pediatric specialties that Mercy lacks, while Mercy brings a managed-care insurance product and a physician partnership model to the table. —Adam Rubenfire