Two health systems in the Chicago area, which include nine hospitals total, have signed a non-binding letter of intent to form a joint operating company.
Arlington Heights, Ill.-based Alexian Brothers is part of St. Louis-based Ascension Health, whereas Hinsdale, Ill.-based Adventist Midwest Health is part of Adventist Health System. Under the agreement, the systems will retain separate ownership of their assets while integrating operations and bringing together more than 3,000 physicians for patient care.
The partnership is expected to be finalized by early fall.
Dave Crane, president and CEO of four-hospital Adventist Midwest Health, said the relationship makes a lot of sense. "In the Chicago market, there are many hospitals and health systems, and as we look to the future we know we need more scale for services population health will require from us," he said. "We've been thinking about this for quite some time. Our relationship with Alexian goes back a couple of years."
The two systems share some common traits: They are both faith-based and have national parents. But Mr. Crane said they still needed more scale.
Mark Frey, president and CEO of five-hospital Alexian Brothers, said the systems border on one another's geography, which he expects to bring value to the Chicago market in terms of population health. Alexian has sites of care throughout northwest suburban Chicago, while Adventist Midwest has hospitals in the suburbs of Bolingbrook, Glendale Heights, Hinsdale and La Grange.
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