Novi, Mich.-based Trinity Health has agreed to invest up to $150 million in Mercy Hospital and Medical Center in Chicago over five years in a deal to acquire the facility, according to a Crain's Chicago Business report.
When the proposed deal closes in early 2012, Trinity will give Mercy an immediate cash infusion of $40 million for an ongoing renovation project as part of the $150 million. The remaining funds will be spent on capital, equipment and information systems from June 30, 2013 through June 30, 2017. Beyond this five-year agreement, Trinity will not pay any additional amount to acquire the 449-bed hospital.
Trinity indicated on its change of ownership application that it plans to own the hospital for at least three years. Trinity and Merger had announced they were in merger talks in September. The deal would be Trinity's second in the Chicago area, as it acquired Loyola University Health System in July.
The Illinois Health Facilities and Services Review Board still needs to approve the sale.
Trinity Health Signs Letter of Intent to Acquire Chicago's Mercy Hospital
Chicago's Mercy Hospital in Talks to Merge With Trinity Health
When the proposed deal closes in early 2012, Trinity will give Mercy an immediate cash infusion of $40 million for an ongoing renovation project as part of the $150 million. The remaining funds will be spent on capital, equipment and information systems from June 30, 2013 through June 30, 2017. Beyond this five-year agreement, Trinity will not pay any additional amount to acquire the 449-bed hospital.
Trinity indicated on its change of ownership application that it plans to own the hospital for at least three years. Trinity and Merger had announced they were in merger talks in September. The deal would be Trinity's second in the Chicago area, as it acquired Loyola University Health System in July.
The Illinois Health Facilities and Services Review Board still needs to approve the sale.
Related Articles on Chicago Hospital Mergers:
Chicago's Northwestern Memorial May Partner With Roseland Community HospitalTrinity Health Signs Letter of Intent to Acquire Chicago's Mercy Hospital
Chicago's Mercy Hospital in Talks to Merge With Trinity Health