North­west­ern, Cen­te­gra next big merger in Chicago?

Modern Healthcare - - REGIONAL NEWS - —Kris­ten Schorsch, Crain’s Chicago Busi­ness

North­west­ern Me­mo­rial Health­Care is on a deal-mak­ing binge. The Chicago sys­tem is in talks to af­fil­i­ate with Cen­te­gra Health Sys­tem in north­west subur-

ban Crys­tal Lake, Ill.

Cen­te­gra, a two-hos­pi­tal sys­tem with a third set to open in Au­gust, would be the fourth such deal for North­west­ern in roughly two years. A merger would cre­ate a nine-hos­pi­tal sys­tem (10 when Cen­te­gra’s hos­pi­tal in Hunt­ley opens this sum­mer) stretch­ing from 70 miles west of down­town Chicago, north to near the Wis­con­sin bor­der. The sys­tems signed a let­ter of in­tent and plans to ex­plore an af­fil­i­a­tion over the next sev­eral months.

Cen­te­gra posted $434 mil­lion in rev­enue for 2014, ac­cord­ing to its most re­cent an­nual fi­nan­cial state­ment. North­west­ern, by com­par­i­son, is much big­ger, with $3.89 bil­lion in 2015 rev­enue.

North­west­ern has been adding com­mu­nity hos­pi­tals to its sys­tem and ex­pand­ing its foot­print out to the sub­urbs at a rapid pace. It’s fend­ing off ri­vals like Ad­vo­cate Health Care, the largest health sys­tem in the state with hos­pi­tals that also are ma­jor ri­vals to Cen­te­gra. Since 2014, North­west­ern has added Ca­dence Health and KishHealth, both in the western sub­urbs. Wheaton-based Mar­i­an­joy Re­ha­bil­i­ta­tion Hos­pi­tal and af­fil­i­ates were the most re­cent ad­di­tion.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.