Two Chicago hospitals, Sinai Health System and Holy Cross Hospital, are in talks to affiliate, according to a Crain's Chicago Business report.
If Sinai Health System acquires Holy Cross, both hospitals will benefit from larger economies of scale, according to the report. In addition, Holy Cross would be able to access Sinai Health's stronger and broader specialist network.
Holy Cross Hospital has been looking for a potential acquirer since June 2011, when Nashville, Tenn.-based Vanguard Health Systems walked away from a deal to buy the struggling hospital.
According to the report, Holy Cross is in better financial shape than it was when it was negotiating with Vanguard. The hospital has 40 to 50 days of operating cash, compared with the four days of cash it had in 2009.
The Chicago hospitals expect to complete discussions in July.
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If Sinai Health System acquires Holy Cross, both hospitals will benefit from larger economies of scale, according to the report. In addition, Holy Cross would be able to access Sinai Health's stronger and broader specialist network.
Holy Cross Hospital has been looking for a potential acquirer since June 2011, when Nashville, Tenn.-based Vanguard Health Systems walked away from a deal to buy the struggling hospital.
According to the report, Holy Cross is in better financial shape than it was when it was negotiating with Vanguard. The hospital has 40 to 50 days of operating cash, compared with the four days of cash it had in 2009.
The Chicago hospitals expect to complete discussions in July.
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