Effective Sept. 1, Northwestern Memorial HealthCare and Winfield-based Cadence Health will merge into one health system — one of the largest in the Chicago area, officials said Wednesday.
The merged operation would bring in a combined revenue of nearly $3 billion a year; the deal was approved in July by the Illinois Health Facilities and Services Review Board, which regulates the health industry.
Federal regulators also had to review the proposal. They don’t comment on whether a merger has been approved, but the proposal was sent to them in July. They have not voiced any objection, a spokesman for Cadence Health said.
The move will merge 60 care sites across Chicago and the suburbs, including four hospitals; in all, those sites will employ more than 4,000 physicians and 19,500 employees under the Northwestern Medicine name, the health systems said in their announcement.
“We are honored to welcome Cadence Health into the Northwestern Medicine family,” Dean Harrison, NMHC President and CEO, said in a statement. “Together, we will continue to deliver the Northwestern Medicine brand promise, which is to provide trusted, quality care that is accessible where patients live and work, safe and accountable, and centered on world-class medicine.”
The merge was initially announced in March.
Harrison will remain CEO of the combined health system with Mike Vivoda, the current president and CEO of Cadence Health, serving as its regional president and NMHC Senior Vice President.
Northwestern Memorial HealthCare is the parent of Northwestern Memorial Hospital in Streeterville, Northwestern Medicine Lake Forest Hospital of Lake Forest and the Northwestern Medical Group. Cadence Health was formed in 2011 following a merger with Central DuPage Hospital of Winfield and Delnor Hospital of Geneva.
The merger would allow Northwestern Memorial to increase its reach in the west suburbs, where Cadence has a strong presence. Cadence, meanwhile, would become part of a larger system, with a financially strong parent organization and become affiliated with an academic medical center.
Roger D. Strode, a health care business lawyer with Foley & Lardner LLP, noted that the Northwestern and Cadence consolidation is part of a larger trend that the Chicago-area has seen lately.
“Like all high profile mergers, this is going to kick up dust in the Chicago area,” said Strode, who was not part of the Northwestern deal. “I think you would have seen [continued movement and merger activity] regardless of whether or not this merger happened. It’s just that this merger may have accelerated the plans of those hospitals and systems looking for partners.”
A spokesman for Cadence has said there are no plans to layoff employees with the merger.
Twitter: @MonifaThomas1Tags: Central DuPage Hospital, health, Northwestern Lake Forest Hospital