Now, a Condell-Advocate merger in Lake County?
Condell Medical Center rejected a merger proposal with Lake Forest Hospital on Wednesday and opted instead to begin talks to partner with Advocate Health Care.
Senior leadership from Condell and Advocate said a merger would strengthen both not-for-profit health providers while aligning their missions.
"From a cultural and values standpoint, Advocate is a good match for Condell," Condell Vice President Jodi Levine said. "Advocate is in sync with Condell's plans to expand and elevate services."
What the move also does is strengthens Condell's financial picture. Condell reported an operating loss of $10.4 million for 2006.
And, it makes Condell a more influential player in the debate over a new hospital in the western part of the county. Advocate is one of two companies with plans on the table, and Condell has opposed those before now.
The Advocate deal comes two days after Lake Forest Hospital presented a merger proposal to the Libertyville-based hospital, saying the move would provide a new health-care system for Lake County.
Lake Forest officials would not comment on Condell's announcement.
In its proposal, Lake Forest Hospital presented a line of credit to Condell.
Officials at Oak Brook-based Advocate would not comment on whether a similar offer was tendered.
In November, Condell ended its relationship with Blue Cross Blue Shield, affecting 11,000 HMO patients and tens of thousands of PPO patients.
Levine acknowledged Condell has struggled financially, and said finding a partner was unavoidable.
"It would be extremely difficult for us to deliver the breadth and level of service to Lake County that the county deserves and needs without some additional financial resources," Levine said.
Wednesday's announcement changes the playing field for Condell, which until now had been a staunch opponent of Advocate's efforts to build another hospital in Lake County.
Advocate is awaiting approval from the Illinois Health Facilities Planning Board to build a $251 million, 144-bed acute care hospital in Round Lake.
The state has postponed a decision on the matter until at least April. At that time, the planning board also will hear from Vista Health of Waukegan, which wants to build a $100 million, 140-bed facility in Lindenhurst.
The planning board will makes its decision based on the community's need and isn't likely to approve both projects. That pits Advocate and Vista against each other in the race to be the first to open a new hospital in Lake County in more than 30 years.
Vista officials would not comment on merger talks Wednesday.
Kelly Jo Golson, director of communications for Advocate, said a merger does not change Advocate's plans to build in Round Lake.
"As we've said from the beginning, Advocate is committed to Lake County," Golson said.
Because of confidentiality issues, Levine said, specifics including the timetable for the merger could not be discussed.
"Neither organization is interested in speculation, and we will keep people informed as we are able to," Levine said. "We are in preliminary discussions, but interested in forming a successful partnership."