Illinois hospitals finalize $160M acquisition

Anne Zieger — Wed, 16 Jul 2008 09:34:05 -0400

Though their deal still hasn't won the approval of the FTC and other regulators, Illinois hospitals Evanston Northwestern Healthcare has agreed to acquire Rush North Shore Medical Center. As part of the deal, Evanston Northwestern will pay off Rush North Shore's $54 million in debt, as well as contribute $10 million to a community foundation. What's more, Evanston Northwestern has committed to put in $100 million in capital over the next several years, an agreement that includes putting an electronic medical record in place at Rush. Evanston Northwestern already operates hospitals in Evanston, Glenview and Highland Park, while Rush is affiliated with two other hospitals in Chicago, including an academic medical center.

To date, the deal has not raised any red flags with the FTC. If things stay this way, it will be a welcome break for Evanston Northwestern, which hopes to see the deal close by the end of the year. Evanston Northwestern previously faced significant FTC concerns when it acquired Highland Park Hospital, a deal that the agency concluded was anti-competitive. While the FTC hasn't demanded a divestiture, the two have been required to contract separately with health plans.

To learn more about the deal:
- read this Chicago Tribune piece

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