Alexian, Adventist move ahead with joint company
Arlington Heights-based Alexian Brothers Health System, part of St. Louis-based Ascension, and Hinsdale-based Adventist Midwest Health, part of Adventist Health System, said Friday that they have signed a definitive agreement to form a joint operating company.
Pending regulatory approvals, five Alexian hospitals and four Adventist hospitals in the suburbs will join together, creating an integrated health care system that will serve a combined population of more than 3.8 million people.
The two separate organizations will preserve their respective religious identities and mission priorities, and will integrate their operations while maintaining separate ownership of their assets. The affiliation will result in a notably diverse physician provider network, bringing together more than 3,000 physicians to offer better coordinated, more comprehensive care for patients, Alexian and Adventist said in a joint statement.
Both hospital groups anticipate that their partnership will be finalized by the end of January, following review by appropriate regulatory bodies. The two health systems announced in June that they had signed a nonbinding letter of intent to form the joint company. Since then, both engaged in due diligence, leading to the agreement.
"This is an important milestone in the process of completing the affiliation between our two health systems," said Mark A. Frey, Alexian Brothers president and CEO.
The affiliation will enable Alexian to enhance the-quality care that the system now provides and will extend the system's reach and strengthen its position in the highly competitive Chicago health care market, Frey said.
"At the same time, we will be taking another important step toward ensuring the long-term viability of the Alexian Brothers' 800-year healing mission," Frey said.
"This affiliation is an example of Ascension's strategic commitment to developing regional clinically integrated systems of care as we evolve to provide truly person-centered care for populations," said Robert J. Henkel, executive vice president of Ascension, and president and CEO of Ascension Health.
David L. Crane, Adventist Midwest president and CEO, said the affiliation between AMH and ABHS will benefit the communities served by the health systems.
"This affiliation will bring to our communities a level of clinical integration for population health that has never existed, providing new health care options for our patients," Crane said. Although each hospital system represents different faith traditions, they share common missions and values, and this similarity is a key factor, Frey and Crane said.
"Both of our health systems are strong, faith-based organizations," Frey said. "Our values and management style are similar, and we share a charitable mission and a commitment to providing high-quality, person-centered care. Our patients and communities can continue to expect the highest-quality care from Alexian Brothers and Adventist Midwest Health."