Condell rejects merger with Lake Forest Hospital

Condell Health Network's board of directors has rejected a merger proposal by the Lake Forest Hospital Foundation.

Condell will instead enter into negotiations with Oak Brook-based Advocate Health Care to discuss a partnership.

Senior leadership from both organizations say the merger would allow both health providers to strengthen.

"Under this agreement, Advocate and Condell have launched the due diligence process that encompasses a confidential and comprehensive evaluation of both organizations," a statement released this afternoon said.

A spokesman for Lake Forest Hospital said officials would not immediately comment.

On Monday, Lake Forest Hospital presented the merger proposal to the Libertyville-based hospital, saying the move would provide a new health-care system for Lake County.

Lake Forest Hospital also presented a line of credit to Condell to support financial needs of the hospital.

Condell Health Network reported an operating loss of $10.4 million for 2006. In November, the hospital ended its relationship with Blue Cross Blue Shield, affecting 11,000 HMO patients and tens of thousands of PPO patients.