Northwestern Memorial HealthCare, Chicago, has signed a letter of intent to affiliate with two-hospital KishHealth System in DeKalb, Ill.
Terms of the deal will be finalized in coming months, said Christopher King, Northwestern Memorial's spokesman. “It's too early to tell what this potential affiliation will look like. The ink is still wet” on the letter of intent, he said.
Northwestern Memorial's acquisition of area system Cadence Health in September 2014, which included Central DuPage Hospital in Winfield, Ill., and Delnor Hospital in Geneva, Ill., paved the way for the latest potential deal. Cadence was previously in talks with KishHealth, King said.
Northwestern Memorial ended its last fiscal year before the Cadence Health deal with an operating income of $142.1 million on revenue of $2.4 billion. KishHealth ended its fiscal 2014 on April 30 last year with operating income of $6.6 million on revenue of $221.7 million.
King said the deal would further expand Northwestern Memorial's market to the west. KishHealth operates Kishwaukee Hospital in DeKalb, Ill., and Valley West Hospital in Sandwich, Ill.
“The proposed alignment positions us to serve the future needs of our patients and community,” KishHealth CEO Kevin Poorten said in a news release.
A final agreement must be approved by regulators before closing. If approved, Northwestern Memorial Healthcare would own six hospitals.
