Passavant Area Hospital in Jacksonville, Ill., has agreed to affiliate with Memorial Health System, based in Springfield, Ill.
According to a news release, Passavant would become the fourth affiliated hospital within Memorial Health System. The other three are Memorial Medical Center in Springfield, Abraham Lincoln Memorial Hospital in Lincoln, Ill., and Taylorville (Ill.) Memorial Hospital.
Passavant, staffed for 93 inpatient beds and licensed for 108 beds, agreed to explore an affiliation with Memorial Health System in March 2013. Both parties have conducted due diligence since then, and now the transaction awaits regulatory approvals. Financial terms of the deal were not disclosed.
Executives with the two organizations cited healthcare reform and increased efforts to coordinate care as major factors behind the decision to affiliate. In October 2011, Memorial Health System and Passavant collaborated on constructing a physician office building, although at the time Passavant officials said there were no talks of affiliation.
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