The parent companies of two hospitals in Illinois--Delnor Health System and Central DuPage Health--have agreed to merge, according to a joint press release.
The merger will create a "powerhouse" in Chicago's western suburbs with a combined $1 billion in annual revenue, Chicago Breaking Business reports.
Regulators, including the Illinois Health Facilities and Services Review Board, the Federal Trade Commission, the Department of Justice and the Illinois Attorney General, must still approve the deal. In contrast to other hospital operators that look to merge because they are losing money, Central DuPage and Delnor both are profitable.
"Scale matters in terms of quality," Luke McGuinness, chief executive of Central DuPage Health System, told the Tribune. He described the merger as one of "two very, very strong players in contiguous geographic areas."
McGuinness will be the CEO of the larger combined health system, which will be governed by a board with equal representation from both health systems. Thomas Wright, Delnor's CEO, will be executive vice president of the combined system and top executive of Delnor.
No money will change hands in the deal, which McGuinness described as a "merger of balance sheets."
Patients of 313-bed Central DuPage Hospital in Winfield and 159-bed Delnor Hospital in Geneva will continue to have access to their regular physicians and healthcare centers, but will gain access to a broader range of clinical services, according to the press release.
McGuinness also noted that Central DuPage's affiliations with Cleveland Clinic and Children's Memorial will extend to Delnor patients once the deal is completed, which the hospitals expect to occur in the next few months.