Advocate, Condell confirm merger
Condell Medical Center in Libertyville will merge with Advocate Health Care system, officials with both organizations confirmed today.
The two parties inked a definitive agreement that would integrate Condell Health Network into Advocate Health Care, per an official statement. Details including the purchase price were unavailable Tuesday afternoon.
The biggest benefit of the deal may come for patients insured by Blue Cross Blue Shield, the area's largest commercial insurer. Condell stopped accepting Blue Cross Blue Shield patients since Nov. 1.
Advocate spokeswoman Kelly Jo Golson said once the Condell deal is closed, negotiations will begin with Blue Cross Blue Shield to get Condell back on its network.
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"Advocate has a good relationship with Blue Cross Blue Shield, so we're hopeful," she said.
Oak Brook-based Advocate is the Chicago area's largest health-care provider with seven acute-care hospitals, one specialty hospital, two children's hospitals, four Level I trauma centers, a home health-care company and three of region's largest medical groups. It has more than 3,500 licensed beds.
The terms of the deal must be approved by both federal and state regulatory agencies, which could take up to five months, officials said.
Advocate has agreed to expand Condell's emergency department by adding 68 private beds to its existing 283 licensed beds, and acquire Level I trauma designation for the Libertyville hospital.
Those changes require the approval of the Illinois Health Facilities Planning Board.
"The integration of Advocate and Condell ultimately will result in significant benefits to the residents of Lake County," said Jim Skogsbergh, president and CEO of Advocate Health Care. "We identified this region some time ago as an area in need of increased access to care. The addition of Condell into the Advocate family allows us to offer some immediate solutions to the community that will enhance and expand quality heath-care services."
The deal is a boon to the financially troubled Condell, which declared its future in jeopardy after an external audit last year revealed misstated earnings and financial losses from previous years. Condell reported an operating loss of $10.4 million for 2006.
The hospital was dealt another blow when problems arose with insurer Blue Cross Blue Shield.
After negotiating unsuccessfully for more than a year, Condell decided to sever ties with the insurance company last year, affecting 11,000 HMO patients and tens of thousands of PPO patients - about 20 percent of Condell's business. Blue Cross Blue Shield alleges Condell owes it millions of dollars, and vice versa.
Earlier this year, Condell laid off roughly 80 employees as a result of a dramatic decrease in patients since Nov. 1, when Condell stopped accepting Blue Cross Blue Shield, the area's largest commercial insurer.
The 80-year-old Condell is the largest health-care provider in Lake County with services such as cardiac surgery, neurosurgery and radiation therapy. Condell Health Network also includes four immediate-care facilities, home services and an intergenerational care center providing child and adult day care services.
"By joining Advocate, Condell will be able to better meet the growing needs for health-care services in Lake County," said Dennis Millirons, president and CEO of Condell Medical Center. "We were attracted to Advocate due to their mission and values and their absolute commitment to the community. This along with their strong financial standing and their comprehensive system resources make them a great partner for Condell and for Lake County."
Advocate and Condell formally announced their exclusive agreement to explore integration in mid-January. This new agreement was approved by each system's board of directors late last week.
"Together with Condell, Advocate will further our health-care ministry and healing mission for the residents of Lake County who are in urgent need of increased access to care," said John Timmer, chair of the Advocate board of directors.
Advocate is a not-for-profit, mission-based health system affiliated with the Evangelical Lutheran Church in America and the United Church of Christ. It provided more than $296 million in charitable care and services throughout the Chicago area in 2006.