NorthShore, Edward-Elmhurst Merger Receives Regulatory Approval

Evanston IL

05 January, 2022

1:03 PM

Description

EVANSTON, IL — The merger of NorthShore University HealthSystem and Edward-Elmhurst Health has closed following approval from state and federal regulators. The combination creates the third-largest health system in the state, a nine-hospital group that is expected to generate more than $5 billion in revenue in its first year, according to a joint announcement from Evanston-based NorthShore and Warrenville-based Edward-Elmhurst. In addition to the new system's hospitals — Evanston Hospital, Glenbrook Hospital in Glenview, Highland Park Hospital, Skokie Hospital, Swedish Hospital on Chicago's North Side, Elmhurst Hospital, Edward Hospital and Linden Oaks Behavioral Health in Naperville — it includes 300 ambulatory locations across six Chicago area counties. Hospital officials said a "thoughtful approach to a new name and brand for the combined entity is underway." But for the moment, the new health care system will be known as "NorthShore – Edwards-Elmhurst Health." J.P. Gallagher goes from being president and CEO of NorthShore to the same role at the newly formed nonprofit hospital conglomerate, which was announced in September and took effect at the start of the year. "Our combined organization offers significant promise for our patients, team members and communities," Gallagher said in the announcement. "As we deepen our commitment to community connection and expand regional access to leading-edge, expert care in our patients' back yards, we have the opportunity to create something truly differentiated and transformative." The new organization's board includes members representing NorthShore, Edward-Elmhurst, Northwest Community Healthcare and Swedish Hospital and will be composed of north and south "regions," according to hospital officials. Mary Lou Mastro and J.P. Gallagher bump fists following the finalization of a merger agreement between their hospital groups. (Courtesy NorthShore – Edward-Elmhurst) Mary Lou Mastro moves from being CEO of Edward-Elmhurst to CEO of the south region. "We have so much in common – our values, our cultures and our commitment to our people," Mastro said in the joint announcement. "I am incredibly optimistic that as we bring together two outstanding, award-winning organizations, our future is unlimited and we will be successful." Edward-Elmhurst was formed in 2013 by the merger of the 352-bed Edward Hospital — originally Edward Sanitorium — and Health Services and Elmhurst Memorial Healthcare, which includes the 259-bed Elmhurst Hospital. Mastro said that merger led to reduced costs to patients, the Daily Herald reported. She said health costs may continue to rise after the merger due to increases in costs across the industry, not as a result of the consolidation of hospital ownership. The new group, NorthShore – Edward-Elmhurst, includes more than 25,000 employees, 6,000 doctors and 2,300 hospital beds. Related:'Ongoing Influx' At North Shore Hospitals Expected Through MonthGlenbrook Hospital Returns To Focus On COVID-19 PatientsElmhurst Hospital's Company To Merge With ChainNorthShore Health System Plans To Merge With Edward-Elmhurst Prior to the Edward-Elmhurst merger, NorthShore acquired two hospitals in the past two years, adding Swedish Covenant in 2020 and Northwest Community in 2021. Those acquisitions followed a pediatric care partnership with Advocate Health Care, which was established after a federal appeals court sided with anti-trust regulators and blocked a proposed merger between Advocate and NorthShore. Gallagher said the fact that neither the Federal Trade Commission nor the Illinois Health Facilities and Services Review Board asked for additional submissions to accompany the merger application, according to the Daily Herald, which the CEO indicated meant the two entities were well-prepared for the merger. As part of the deal, both NorthShore and Edward-Elmhurst have committed to contributing $100 million to a new community investment fund. "These funds," Gallagher announced, "will generate millions of dollars annually to enhance health and well-being, advance health equity and support local economic growth."