Alexian Brothers announces merger plans
Alexian Brothers Health System, which operates Alexian Brothers Medical Center in Elk Grove Village and St. Alexius Medical Center in Hoffman Estates, plans to become part of St. Louis-based Ascension Health.
The two parties made the announcement today. The new health system would be the largest Catholic health system in the country, officials said.
The deal is in the process of being finalized and still needs approval from the Illinois attorney general and the state’s health facilities planning board. Anthony R. Tersigni, president and CEO of Ascension Health, said the transition will be “seamless” for patients. Tersigni raved about Alexian’s financial stability and leadership.
“It’s something that’s very attractive,” he said.
Ascension was founded in 1999. The network is composed of 66 acute-care hospitals scattered throughout 19 states, as well as Washington, D.C. Ascension operates Columbia St. Mary’s Hospital in Milwaukee. The addition of Alexian Brothers would give Ascension its first presence in Illinois since it left St. Anthony Hospital in Chicago in 2009.
Alexian officials two years ago began the search for a strategic partner, buoyed by health care reform and changes to how health care professional are reimbursed, Frey said. They considered several options before reaching the agreement with Ascension, said Mark A. Frey, executive vice president of Alexian Brothers Health System. Frey said Ascension leaves them with local autonomy, which was important.
“We spent quite a bit of time, but in the end the only reasonable, viable agreement was with Ascension,” Frey said.
Frey said the agreement is a great story for Catholic health care in Chicago, as Ascension’s values and belief in distributive leadership meshed with Alexian’s own goals.
Tersigni raved about Alexian’s brand recognition and said the names of the hospitals aren’t expected to change. The same goes with naming rights for Alexian Field in Schaumburg — the former home of the Flyers baseball team — and the Alexian Brothers-sponsored Tour of Elk Grove cycling race.
“We don’t anticipate changes to sponsorships at this time,” Frey said.
Alexian Brothers plans to break ground on May 30 for its long-awaited new Alexian Brothers Children’s Hospital in Hoffman Estates, as part of St. Alexius. The village gave Alexian until 2016 to complete the project. Frey said that the deal with Ascension would accelerate construction and they plan on completing the building in two years.
Alexian Brothers, based in Arlington Heights, also has facilities in Missouri, Tennessee and Wisconsin.
Frey said there are no plans to move the Arlington Heights office or changes to Alexian’s management team.
Ascension Health has provided more than $1.1 billion in care for poor people and community benefits in the last year.
“Ascension Health strives to put the patient at the center of all we do,” Tersigni said. “Alexian Brothers also has an emphasis on person-centered health care.”
Specific terms of the agreement are confidential.