Alex­ian Bros., Ad­ven­tist Mid­west to form nine-hospi­tal sys­tem

Modern Healthcare - - REGIONAL NEWS - —Andrew L. Wang, Crain’s Chicago busi­ness

Alex­ian Broth­ers Health Sys­tem and Ad­ven­tist Mid­west Health signed a let­ter of in­tent to form a joint op­er­at­ing com­pany that would over­see nine Chicagoarea hos­pi­tals, mak­ing the com­bined net­work the third-largest in Illi­nois based on the num­ber of hos­pi­tals.

The agree­ment wouldn’t reach the level of full merger be­cause of the dif­fer­ent re­li­gious iden­ti­ties. The Ad­ven­tist hos­pi­tals will not come un­der the Catholic Eth­i­cal and Re­li­gious Di­rec­tives, an Ad­ven­tist spokes­woman said.

The joint com­pany would have its own gov­ern­ing board and com­bine the cor­po­rate op­er­a­tions of the smaller sys­tems un­der one roof. Alex­ian CEO Mark Frey would stay in the top ex­ec­u­tive slot, and Ad­ven­tist CEO David Crane plans to be ex­ec­u­tive vice pres­i­dent, the two of­fi­cials said in an in­ter­view.

The two sys­tems would main­tain sep­a­rate own­er­ship of as­sets and sep­a­rate fi­nances, and the as-yet-un­named op­er­at­ing com­pany would han­dle long-term plan­ning and strat­egy for the sys­tems. It would also be able to is­sue debt, but only with the ap­proval of Alex­ian’s and Ad­ven­tist’s par­ent com­pa­nies: St. Louis-based As­cen­sion Health, which ac­quired Alex­ian in 2012, and Or­lando, Fla.-based Ad­ven­tist Health Sys­tem.

Alex­ian Broth­ers Med­i­cal Cen­ter, Elk Grove Vil­lage, Ill., will be part of the new net­work.

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