Managed-care company Coventry Health Care, Bethesda, Md., said it signed a definitive agreement to purchase Preferred Health Systems, Wichita. The 120,000-member health plan is a wholly owned subsidiary of Via Christi Health System, Wichita. Financial terms of the sale were not disclosed, although Coventry said the acquisition would be neutral to earnings in the first year. The deal is expected to close within 90 to 120 days, pending regulatory approvals. The definitive agreement includes a provision for Coventry and Via Christi to partner on innovative services that transform healthcare delivery, Via Christi said. Preferred Health Systems was started in 1993 by local physicians and the two Wichita hospitals that merged to form Via Christi. The Roman Catholic system became the sole owner of Preferred in 1999.
State regulators approved the acquisition of two-hospital BroMenn Healthcare System, Normal, Ill., by Advocate Health Care, which has nine hospitals in Chicago and its suburbs. Advocate and BroMenn started talks nearly a year ago and recently applied for permission for a change of ownership from the Illinois Health Facilities and Services Review Board. BroMenn, located in central Illinois about 125 miles from Chicago, would be Advocate’s first hospital outside the metropolitan area. According to the filing with the state, Advocate intends to assume all of BroMenn’s assets and liabilities with no purchase price, with a planned closing date of Jan. 1, 2010. The state board’s staff report says the hospitals have a combined book value of $86 million, though it notes a fair-marketvalue assessment had not been conducted. BroMenn is made up of 213bed BroMenn Regional Medical Center; 25-bed Eureka (Ill.) Community Hospital; BroMenn Physicians Management Corp., which comprises 11 practices; and BroMenn Provider Network, a physicianhospital organization. The BroMenn hospitals, for the fiscal year ended June 30, 2008, recorded income of $18.9 million on revenue of $186.1 million on their Form 990 filing with the Internal Revenue Service.
Regulators have approved Advocate’s acquisition of BroMenn Regional Medical Center.