The parent companies of Delnor Hospital in Geneva and Central DuPage Hospital in Winfield said Friday that they have signed a definitive agreement to merge their operations into a powerhouse in the western suburbs with a combined $1 billion in annual revenue.
The deal comes as the health care overhaul law is being implemented over the next four years, triggering a wave of consolidation of hospitals and doctor practices across the country. Hospitals are looking to gain care economies of scale, pool resources to invest in information systems and clinical programs and gain negotiating leverage with insurance companies who pay them.
But unlike other independent hospital operators that are looking to merge from a position of weakness because they are losing money, Central DuPage and Delnor are profitable and have different ideas to be competitive.
“Scale matters in terms of quality,” Luke McGuinness, chief executive of Central DuPage Health System, parent of 313-bed Central DuPage Hospital said in an interview with the Tribune. “The story of us combining is a story of growth. It is really a merger of two very, very strong players in contiguous geographic areas.”
McGuiness will be the chief executive of the combined larger health system, which will be governed by a board with equal representation from Central DuPage and Delnor Health System, parent of 159-bed Delnor Hospital.
Thomas Wright, CEO of Delnor, will continue as executive vice president of the combined health care system and be the top executive of Delnor.
McGuiness said no money would change hands between in the deal, which he described as a “merger of balance sheets.” The deal still faces approval from state and federal regulators including the U.S. Justice Department, the Illinois Attorney General’s Office and the Illinois Health Facilities and Services Review Board.
Given the competition in the western suburbs, it’s unlikely the deal would face a regulatory challenge, observers say. Central DuPage has been aggressive in its efforts to draw in patients, signing partnerships with the Cleveland Clinic’s heart care program and Children’s Memorial Hospital in Chicago, which provides 24-hour neonatology service from Children’s doctors at Central DuPage.
McGuiness said the affiliations with Cleveland Clinic and Children’s Memorial will extend to Delnor patients once the deal is completed, which both hospitals expect to happen “in the coming months.”
“We are excited to bring together two top quality health systems to deliver the best in medical care for the patients and communities we serve,” Wright said.
bjapsen@tribune.com
They probably have to so as to be able to combat Obamacare.
It’s Obibblecare. Get it right.
The insurance companies control healthcare in this country, Obama has nothing to do with it. Welcome to the Medical-Industrial Complex.
CDH Central DuPage Hospital.. “Come Die Here”.. This Hospital has laid off so many people.. That it is dangerous to get care at the Hospital.. I do not know why anyone would want to work with CDH.. First thing that will happen after the merger will be JOB CUTS!!..
“More”,
CDH is an excellent hospital, which is why it was able to establish these relationships with the prestigous Cleveland Clinic and Children’s Memorial Hospitals. It is consistently rated one of the best in the country. I also can’t remember the last time we’ve had layoffs, and I’ve been here 10+ years. Instead the administration like many other large companies has worked to find creative ways to make sure every employee possible can keep their jobs in this tough healthcare environment. You obviously seem like a Delnor employee that is in fear of losing their job. Rightfully so I’m sure.
Two hospitals that charge an obscene amount of money to their patients. Warning to new parents: New Baby = $$$$$ for Delnor/CDH.
Horrible hospital but nice to look at these days. Their misdiagnosis almost killed me
Central DuPage hospital is well known for being a “Killing Machine” used and named by a huge Drug system which brings in drugs into the US. They are used per the drug system because families of the deceased don’t question the death however that may be changing soon. There are other hospitals being used by the drug system for purposes of exterminating those who are threatening to their goals. It’s done quietly without any questions being asked. Now CDH is expanding their reach…. There are witnesses waiting to tell their story… stay tuned!
Marty Didier
Northbrook, IL
Hospitals should not be “aggressively” trying to get patients. Healthcare is a right – not a privelage. Hospital CEO’s do not need to make $25 million per year; that is money that should be going to help people with medical bills. Merge my *** – all it means is more profits for the CEO and sharholders while I pay $700/month for HMO!!!!
Is Delnor a non-profit (as is CDH?) I’m glad to see both are profitable!
Does this affect all of the outlying CDH operations throughout the county?
You guys should stop complaining because, one the health care we have now isnt as good as it was supposed to be. also the law has just been signed so give it some time. so if u want to say u have the right to choose tell that to ur congress men or state official. If you do not have insurance and need one You can find full medical coverage at the lowest price search online for “Wise Health Insurance” If you have health insurance and do not care about cost just be happy about it and trust me you are not going to loose anything!