Modern Healthcare - - REGIONAL NEWS - — Ashok Selvam

— Of­fi­cials from 330-bed Ed­ward Hospi­tal in Naperville and 277-bed Elmhurst (Ill.) Me­mo­rial Hospi­tal signed a let­ter of in­tent to merge. The par­ent com­pa­nies—Ed­ward Hospi­tal & Health Ser­vices and Elmhurst Me­mo­rial Health­care—in­clude more than 50 lo­ca­tions with 7,600 em­ploy­ees and 1,680 staff physi­cians. The trans­ac­tion in­cludes Lin­den Oaks Hospi­tal at Ed­ward, a 94-bed psy­chi­atric hospi­tal in Naperville. Lead­ers of the or­ga­ni­za­tions ex­pect to com­plete the deal by the mid­dle of the year, pend­ing reg­u­la­tory ap­provals. The new not-for-profit sys­tem would have rev­enue of more than $1 bil­lion, ac­cord­ing to a news re­lease. North­west­ern Me­mo­rial Health­Care in Chicago, which ac­quired its first sub­ur­ban hospi­tal in 2010, was in­ter­ested in ac­quir­ing Elmhurst, but ne­go­ti­a­tions broke down last year. “To­gether, Ed­ward and Elmhurst can en­hance the qual­ity and cost-ef­fec­tive­ness of health­care while still main­tain­ing our strong lo­cal com­mu­nity fo­cus,” Ed­ward Pres­i­dent and CEO Pamela Davis said in a news re­lease. Davis would serve as CEO of the new yet-to-be named sys­tem. The lat­est doc­u­ments filed with the IRS showed that Elmhurst failed to turn a profit in fis­cal 2011, post­ing an $11.3 mil­lion deficit on $364.9 mil­lion in rev­enue. Ed­ward made a $31.2 mil­lion profit dur­ing the same time­frame on $493.7 mil­lion in rev­enue. A spokesman com­ment­ing on be­half of both hos­pi­tals de­clined to say how the new or­ga­ni­za­tion would be struc­tured and de­scribed the move as a straight merger. It’s un­clear what role Elmhurst Pres­i­dent and CEO Peter Daniels would hold. The spokesman said only that Daniels played a key role in the merger talks and con­tin­ues to play a crit­i­cal role at Elmhurst.

Elmhurst Me­mo­rial Hospi­tal is part of the planned merger ex­pected to close this year.

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