St. Louis's massive, $15 billion Catholic health system, Ascension Health, announced yesterday its plan to merge with Chicago's Alexian Brothers Health System, the Chicago Tribune reports. Financial details of the deal were not disclosed.
The deal is emblematic of a wave of consolidation this year, as hospitals struggle to upgrade information systems and make other capital improvements in a down economy, the Tribune notes. Alexian is profitable, with $925 million in revenues per year, but even that isn't "large enough" to support the kind of investments needed, hospital executives tells the Tribune. Alexian also is just about to break ground on a new children's hospital in Chicago on May 30.
And the consolidation trend continues apace in the Chicago area, with Advocate Health Care, Chicago, in talks with Sherman Hospital in suburban Elgin; Loyola University Medical Center in Maywood inking a deal with Trinity Health of Michigan; and Provena Health in Mokena courting Resurrection Health Care, Chicago.
To learn more:
- read the Chicago Tribune article
- find out more from Chicago's Daily Herald