Downers Grove, Illinois-based Advocate Health Care and Milwaukee’s Aurora Health Care have gotten the final approval needed to close their merger, which will create the 10th largest nonprofit, integrated health system in the country.
Having already been approved by the Federal Trade Commission and the Illinois Health Facilities and Services Review Board, the last hurdle was the Wisconsin Office of the Commissioner of Insurance, which gave the deal the OK to move forward on March 22.
“We're full steam ahead,” Advocate president and CEO Jim Skogsbergh, who will serve as co-CEO Advocate Aurora Health. said in a statement. “A team of leaders from both systems have developed a comprehensive integration plan that will allow us to accelerate our efforts on safety, health outcomes, consumer experience and cost while delivering value for the patients, communities and employers who count on us.”
The systems now expect to deal to close April 1. Combined, Advocate Aurora Health would operate 27 hospitals, more than 500 sites of care and employ nearly 70,000 people with estimated annual revenue of $11 billion.
“Our merger represents a tremendous opportunity to elevate the strengths of two great organizations to shape a better future for those we serve,” said Nick Turkal, MD, president and CEO of Aurora, who was also named co-CEO of Advocate Aurora Health. “We are excited to move forward on our commitment to leading the change and building a model of health care that is truly transformational.”
Beyond the co-leadership between Skogsbergh and Turkal, the merger would create a single board of director split equally between Advocate and Aurora representatives. The 15-person leadership team reporting to the co-CEOs will be more weighted towards Advocate, with nine executives coming from the Illinois system.
The combined system will also maintain separate headquarters in Downers Grove and Milwaukee.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.