Modern Healthcare - - Regional News -


Van­guard Health Sys­tems, Nashville, said it has com­pleted its ac­qui­si­tion of two hos­pi­tals from tax-ex­empt Res­ur­rec­tion Health Care, Chicago. In­vestorowned Van­guard said in a se­cu­ri­ties fil­ing that it ended up pay­ing $45.4 mil­lion in the deal, which in­cluded work­ing cap­i­tal. Ac­cord­ing to doc­u­ments filed to win cer­tifi­cate-of-need ap­proval from Illi­nois reg­u­la­tors, Van­guard was sched­uled to pay $40 mil­lion for 181-bed West­lake Hos­pi­tal, Mel­rose Park, and 152-bed West Sub­ur­ban Med­i­cal Cen­ter, Oak Park. The deal gives Van­guard three hos­pi­tals in the near west sub­urbs of Chicago, in­clud­ing 338-bed MacNeal Hos­pi­tal, Ber­wyn, and 12 hos­pi­tals with 16 cam­puses in four states. Van­guard’s pro­posed pur­chase of six-hos­pi­tal Detroit Med­i­cal Cen­ter for $1.27 bil­lion (in­clud­ing a cap­i­tal com­mit­ment of $850 mil­lion) is still pend­ing reg­u­la­tory ap­proval. The deal leaves Res­ur­rec­tion Health Care with six hos­pi­tals, all in the Chicago area.


Illi­nois health­care providers moved one step closer to in­ter­op­er­a­ble elec­tronic data-shar­ing as Gov. Pat Quinn signed a bill cre­at­ing the Health In­for­ma­tion Ex­change author­ity. Un­der the new law, the state author­ity will es­tab­lish and over­see the Illi­nois Health In­for­ma­tion Ex­change and will work to pro­mote adop­tion of elec­tronic health-record sys­tems and health in­for­ma­tion ex­change par­tic­i­pa­tion. Illi­nois will re­ceive $18.8 mil­lion in fed­eral funds from the Amer­i­can Re­cov­ery and Rein­vest­ment Act of 2009 to de­velop and main­tain the ex­change, ac­cord­ing to a news re­lease. The law is ef­fec­tive im­me­di­ately.


The Wis­con­sin Supreme Court or­dered the state govern­ment last month to re­turn $200 mil­lion drawn from a fund es­tab­lished to mit­i­gate the costs of med­i­cal li­a­bil­ity. Un­der a 1975 law, health­care providers are re­quired to pay as­sess­ments into the fund and carry a cer­tain level of mal­prac­tice in­surance. The fund pays out the por­tion of mal­prac­tice claims in ex­cess of that limit. In 2007 state law­mak­ers ap­proved leg­is­la­tion pro­vid­ing for the trans­fer of $200 mil­lion from the li­a­bil­ity fund to prop up the Med­i­caid pro­gram. The trans­fer caused as­sess­ments to rise by nearly 10%, and the fund had to draw a loan from the state’s in­vest­ment fund to cover a neg­a­tive bal­ance. The Wis­con­sin Med­i­cal So­ci­ety filed a law­suit in 2007 to chal­lenge the trans­fer, which was dis­missed by a lower court that ruled the fund did not cre­ate con­trac­tual obli­ga­tions to providers, be­fore reach­ing the Supreme Court on ap­peal.

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