— 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.