Winfield, Ill.-based Cadence Health and Rockford (Ill.) Health System have signed a letter of intent to combine their organizations.
Financial terms of the deal were not disclosed. Under the proposal, both systems would merge under Cadence Health. The new system, which would span from the western suburbs of Chicago to near the Illinois-Wisconsin border, would have three acute-care hospitals: 313-bed Central DuPage Hospital in Winfield, 159-bed Delnor Hospital in Geneva, Ill., and 396-bed Rockford Memorial Hospital. Both systems also have a physician group, and Rockford operates a freestanding rehab hospital.
Cadence and Rockford executives said they expect the transaction will lead to strong physician relationships, cost savings and development of seamless, accountable care.
The announcement comes roughly 18 months after Rockford canceled its planned merger with OSF HealthCare in Peoria, Ill. The Federal Trade Commission challenged the merger, claiming the reduction in competition in the Rockford area would lead to higher costs. Consequently, Rockford and OSF officials decided to halt the deal with "great reluctance."
Cadence's acquisition of Rockford will similarly require regulatory review and approval. Officials will conduct due diligence over the "next several months" before reaching a definitive merger agreement.
More Articles on Hospital Transactions:
Rome Memorial Hospital Signs Deal to Become Bassett Healthcare Affiliate
Casa Grande Regional Medical Center Seeks Potential Buyer
University of Chicago Medicine Forms Affiliation With Franciscan Alliance