Just this week the Federal Trade Commission and Illinois Health Facilities and Service Review Board approved a merger two years in the making; NorthShore University HealthSystem and Edward-Elmhurst Health.
The transaction, which was initially inked in September, comes after NorthShore steadily acquired hospitals over the last few years. In 2019, NorthShore acquired Swedish Covenant Health and in 2020 the organization acquired Northwest Community Healthcare which was it’s sixth hospital. The new addition of Edward-Elmhurst brings NorthShore’s footprint into the western suburbs with two general acute hospitals.
HealthcareDive, an online medical publication, reports “Annual revenue for the combined organization is expected to exceed $5 billion as the merger brings together nine hospitals and 6,000 physicians, which will be the state’s second-largest physician network, officials said.”
A new name and brand for the combined group is expected in the near future, but for the time being the system will be known as NorthShore/Edward-Elmhurst Health.
According to the Chicago Sun Times, “NorthShore operates Northwest Community Hospital in Arlington Heights, Glenbrook Hospital in Glenview, Evanston Hospital, Highland Park Hospital, Skokie Hospital and Swedish Hospital in Chicago. Edward-Elmhurst runs Edward Hospital and Linden Oaks Behavioral Health in Naperville as well as Elmhurst Hospital. The nine hospitals account for nearly 2,400 hospital beds in the suburbs and the north side of Chicago. Additionally, the merger will create a network of more than 300 clinics and other sites of care throughout the suburbs and parts of Chicago, uniting 25,000 employees and producing the second-largest physician network in Illinois, officials said. Combined, the new system will be home to more than 6,000 doctors.”
In terms of commercial real estate, we expect the new health system to expand it’s medical office presence throughout the suburbs. One of the prominent features of the merge was the creation of a new community fund. NorthShore President and CEO, J.P. Gallagher, said “Each organization has committed $100 million to our respective communities. These funds will generate millions of dollars annually to enhance health and well-being, advance health equity and support local economic growth.”
We look forward to what is to come from this new merger and Chicagoland medical community!