Advocate Aurora, Beaumont in merger talks

Advocate Aurora Health is in talks to merge with a Michigan-based health group, which, if approved, would be the second major merger for Advocate in two years.

The directors of Beaumont Health and Advocate Aurora on Wednesday signed a nonbinding letter of intent to open discussions to create a health care system that would reach into Michigan, Wisconsin and Illinois. While talks are in early stages, the partnership would allow both not-for-profit organizations to strengthen health care services throughout the Upper Midwest, officials from both agencies said in a statement.

Talks between the two began in 2019, but were put on hold due to the COVID-19 pandemic.

Beaumont Health, based in Royal Oak, Michigan, is that state's largest health care system based on inpatient admissions and net patient revenue, according to its website. The group has eight hospitals and 145 outpatient centers, with almost 5,000 physicians and more than 38,000 employees.

"Beaumont Health has built a strong reputation for clinical excellence, education and research," Advocate Aurora President and CEO Jim Skogsbergh said in a statement. "This is a unique opportunity to explore a partnership with a like-minded, purpose-driven organization."

Downers Grove-based Advocate Health Care merged with Milwaukee-based Aurora Health in Wisconsin in 2018 to create Advocate Aurora Health. Although they operate under the same umbrella, Advocate and Aurora maintain individual identities and representation in the organization. If any merger arrangement with Beaumont goes through, officials said, all three groups agreed to maintain an equal, one-third representation.

"The potential opportunity to leverage the strength and scale of a regional organization while maintaining a local focus and strong presence in Michigan as a leader and major employer is important to us," said John Fox, Beaumont Health president and chief executive officer.

Advocate Aurora Health has a total 28 hospitals and more than 500 outpatient centers in Illinois and Wisconsin, with more than 8,300 doctors and 74,000 employees, according to its website. Suburban Advocate hospitals include Advocate Lutheran General in Park Ridge, Advocate Good Shepherd in Barrington, Advocate Condell in Libertyville, Advocate Sherman in Elgin, Advocate Good Samaritan in Downers Grove.