The University of Chicago Medicine, one of the major academic medical center hubs within the city, has signed a master affiliation agreement with Franciscan Alliance, a Catholic health system based in northern Indiana.
The transaction reportedly does not involve the transfer of assets and is centered around joint development and management of clinical, research and educational projects. Terms of the deal were not disclosed.
Franciscan, based in Mishawaka, Ind., operates 13 hospitals, most of which are in Indiana, and has $2.4 billion in annual revenue. Under its affiliation agreement with the University of Chicago Medicine, Franciscan's facilities in Crown Point, Dyer, Hammond, Munster and Michigan City will be part of the initiative. The University of Chicago Medicine, which has 577 licensed hospital beds and includes the Pritzker School of Medicine, has $1.3 billion in annual revenue.
"By combining the world-class tertiary and quaternary care and research capabilities of the University of Chicago Medicine with Franciscan Alliance's extensive network of community-based hospitals and ambulatory centers, we will enhance patient care locally and provide seamless access and continuity for patients needing care at any level," Franciscan President and CEO Kevin Leahy said in a news release.
Earlier this year, Franciscan announced plans to lay off 275 employees and eliminate 650 other positions just a month after it cut 125 positions from its two Illinois hospitals. In June, Franciscan said it was looking for partners to acquire or form a joint venture with those two Illinois hospitals as well.
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