UChicago Medicine first announced its intention to form a joint venture with AdventHealth last fall when it signed an agreement to acquire a controlling interest in AdventHealth's Great Lakes Region facilities. Today's announcement cements the two health systems' relationship. They say the joint venture deal officially closed Jan. 1. UChicago declined to disclose the purchase price.
UChicago Medicine now has a controlling interest in AdventHealth's four Illinois hospitals in Bolingbrook, Glendale Heights, Hinsdale and La Grange, along with nearly 50 physician offices and outpatient locations. Each of those facilities will be co-branded and operate under the new joint name.
While UChicago Medicine has a controlling interest in local AdventHealth facilities, AdventHealth, a Seventh-day Adventist health care system based in Altamonte Springs, Fla., retains the remaining ownership stake and will continue to manage daily operations of its facilities. Both health systems will maintain a separate system-level governance and administrative staff, they say.
"With the launch of this affiliation, we are blessed to continue to build on the rich legacy of whole person care and further our mission and commitment to making these communities healthier for years to come," Terry Shaw, president and CEO of AdventHealth, said in a statement.
The health systems expect the new venture to lead to improved outcomes for patients as physicians from both institutions partner and coordinate to deliver high-quality, value-based care.
To oversee the partnership, UChicago Medicine's Section Chief of Gynecology Dr. Sandra Valaitis has been named chief physician for the affiliation. She will work closely with Dr. Bela Nand, chief medical officer at UChicago Medicine AdventHealth Hinsdale and La Grange, on physician collaboration, clinic integration and program development.
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"The biggest benefit of this partnership is to patients," Tom Jackiewicz, president of the University of Chicago Medical Center, said in a statement. "AdventHealth Great Lakes' patients now will have seamless access to UChicago Medicine's specialty and subspecialty care and the latest clinical trials without the commute."
The AdventHealth deal is just the latest expansion move by UChicago Medicine, which is anchored in Hyde Park and employs about 1,600 physicians. Last year, UChicago revealed plans for a new $633 million cancer center in Hyde Park, which it says would be the first free-standing cancer center in Chicago. UChicago Medicine also broke ground last year on a 130,000-square-foot multispecialty ambulatory center in Crown Point, Ind.
UChicago Medicine is among the Chicago region's largest health systems by revenue, according to Crain's data. It reported $2.5 billion in net patient revenue in 2021.
Meanwhile, AdventHealth operates more than 50 hospitals in nine states and employs more than 80,000 people, about 2,400 of whom are physicians.
This story first appeared in Crain's Chicago Business.