Modern Healthcare - - Regional News -


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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.