University of Wisconsin Health has entered into an agreement to merge with Rockford, Ill.-based health system SwedishAmerican Health in a deal that is expected to be finalized by January, assuming approval by state and federal regulators.
The transaction announced Thursday will include the allocation of $255 million in capital over the next five years toward investment in the Rockford market for improvements to SwedishAmerican's electronic health-record system, as well as hospital infrastructure and the development of new clinical-care sites.
“We've long recognized SwedishAmerican as the leading health system in northern Illinois,” said Ron Sliwinski, president and CEO of UW Hospital and Clinics, which is in Madison. “We look forward to working collaboratively with our new partners to meet the challenges of a changing healthcare environment.”
SwedishAmerican will keep its name under the agreement and will become a division of UW Health. Swedish also will retain its local board and management, with system CEO Dr. Bill Gorski remaining in his position.
“This agreement means better patient care in the Rockford region,” Tom Walsh, chairman of the board for SwedishAmerican, said in a statement. “It provides significant new investment in this community and respects the strong history and tradition of SwedishAmerican by maintaining existing leadership and local decisionmaking, including major sponsorship of important community projects and other not-for-profit agencies.”
In addition to the financial investment, SwedishAmerican also will receive greater access to medical specialties, research and physicians from UW Health. As many as 19 UW Health specialists currently see patients in Rockford as part of working relationship the two systems established in 2010.
“UW Health has been a recognized leader in developing community and population health management strategies,” Gorski said. “Together, we will implement these strategies as we continue to address healthcare issues locally, regionally and nationally.”
Founded in 1911, SwedishAmerican is a not-for-profit health system that serves northern Illinois and parts of southern Wisconsin with two hospitals and 30 clinic sites.
UW Health is an academic not-for profit system that operates the 530-bed University of Wisconsin Hospital and Clinics in Madison, and is one of the largest health providers in the state. Combined, the organizations' net revenues are estimated at $3 billion.
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