A state board approved a plan Monday by Advocate Aurora Health to combine with Southern system Atrium Health
The state Health Facilities and Services Review Board voted 6-0 Monday afternoon to allow the combination to move forward. The union would create one of the largest health systems in the country, with 67 hospitals and more than 1,000 sites of care across Illinois, Wisconsin, North Carolina, South Carolina, Georgia and Alabama.
Under the proposed deal, Advocate Aurora and Atrium would form a joint operating company to be called Advocate Health, though Atrium’s hospitals would keep the Atrium name, Advocate’s Wisconsin hospitals would keep the Aurora name, and its Illinois hospitals would still be called Advocate. No money would change hands, and existing assets would remain in the states where they are now.
For the first 18 months after the combination, Skogsbergh and Atrium Health CEO Eugene Woods will co-lead, and then Skogsbergh will retire, leaving Woods as the sole CEO. The board wasn’t the first group to express concern about the combination. The Service Employees International Union Healthcare Illinois wrote a letter in August opposing it, saying it could reduce the quality of health care in the Chicago area while increasing costs, and possibly lead to a reduction in services offered. Also, after the deal was announced, a lawsuit was filed in May accusing Advocate Aurora of anti-competitive conduct, including suppressing competition.
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