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Alexian, Adventist: Partnership means lower patient costs are possible

Updated: June 17, 2014 6:43PM

Alexian Brothers Health System and Adventist Midwest Health have signed a letter of intent to form a partnership with their nine total hospitals.

But the CEOs stressed that it is not a merger.

The two systems would maintain separate ownership of their assets and finances. Yet, they are looking to create an umbrella company to handle long-term planning and strategy for the nine hospitals in suburban Chicago, said Mark A. Frey, president and CEO of Alexian Brothers Health System.

David L. Crane, president and CEO of Adventist Midwest Health, added that “the marriage allows us to still preserve the separate ownerships, but collaborate in this market place to achieve [our joint objectives].”

Creating a joint operating company, as the letter proposes, would enable the hospitals to reduce redundancies, save on big investments and compete with other health care systems in the Chicago area.

A partnership would result in lower patient costs and higher quality in the array of services, the CEOs said.

Alexian is a Catholic health care organization based in Arlington Heights, with two hospitals in Elk Grove Village and three in Hoffman Estates. Hinsdale-based Adventist is a Seventh-day Adventist health system comprising four hospitals, in Bolingbrook, Glendale Heights, Hinsdale and La Grange.

If all approvals are obtained, the health systems anticipate the partnership will be complete by early fall.


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