Non-profit Carle Foundation Hospital in Urbana, Ill., has offered to purchase for-profit Carle Clinic and its subsidiary, Health Alliance Medical Plans, according to a report by the News-Gazette.
Illinois Health Facilities and Services Review Board is currently reviewing the hospital's certificate of need application for the transaction. If the $250 million deal is approved by the board and the clinic's physician-owners, Carle Clinic would become a non-profit entity and would offer charity care. Health Alliance Medical Plans would remain a for-profit business under the agreement.
According to the hospital's application, the deal would be financed by a $82.8 million bond issue and a $162.5 million promissory note. The hospital plans to employ all clinic employees in good standing, including the clinic's 342 physicians.
The agreement will help to integrate care and improve efficiencies as well as expand charity care offerings, according to the hospital.
Clinic physician-owners will review the agreement in November, and the hospital hopes to complete the deal by April 2010.
Read the News-Gazette's report on Carle Foundation's application to purchase Carle Clinic.
Illinois Health Facilities and Services Review Board is currently reviewing the hospital's certificate of need application for the transaction. If the $250 million deal is approved by the board and the clinic's physician-owners, Carle Clinic would become a non-profit entity and would offer charity care. Health Alliance Medical Plans would remain a for-profit business under the agreement.
According to the hospital's application, the deal would be financed by a $82.8 million bond issue and a $162.5 million promissory note. The hospital plans to employ all clinic employees in good standing, including the clinic's 342 physicians.
The agreement will help to integrate care and improve efficiencies as well as expand charity care offerings, according to the hospital.
Clinic physician-owners will review the agreement in November, and the hospital hopes to complete the deal by April 2010.
Read the News-Gazette's report on Carle Foundation's application to purchase Carle Clinic.