Provena, Resurrection are considering merger
Provena Health, Mokena, Ill., and Resurrection Health Care, Chicago, signed a nonbinding letter of intent to explore a merger of the not-for-profit Catholic health systems. Terms of the letter are not being disclosed. A news release said “Resurrection’s and Provena’s boards and sponsoring congregations have agreed to continue exploratory talks and due diligence regarding the potential benefits and terms of a merger.” Six-hospital Provena had operating revenue of $1.2 billion in 2010, while six-hospital Resurrection had $1.4 billion for the fiscal year ended June 30, according to a fact sheet released by the systems. In 2010, Provena invested $61.3 million in equipment and facilities while Resurrection invested $51 million during its fiscal 2010, according to the systems. The two already have collaborated for almost three years as two of the three owners of Alverno Clinical Laboratories, Hammond, Ind. Last year, Vanguard Health Systems, Nashville, paid $45.4 million, including working capital, for two Resurrection-owned hospitals, 181-bed Westlake Hospital, Melrose Park, Ill., and 172-bed West Suburban Medical Center, Oak Park, Ill., according to a securities filing.