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Atrium and Advocate’s merger decision is still up in the air

Atrium and Advocate’s merger decision is still up in the air

According to the Illinois Health Facilities & Services Review Board, letters of protest were sent.

Board members apparently complained to the Daily Herald that they were not given enough information about the new entity’s operating operations and controlling interests.

Yesterday, the Advocate Aurora Health and Atrium Health merger request for a change of ownership was rejected by the Illinois Health Facilities & Services Review Board by a 3-2 vote. Later, the board decided to review the decision. It will meet once more on December 13.

The state board had also received letters of objection, the board’s material made public stated.

Advocate organisations Aurora Health and Atrium Health declared their intention to join in May. Organizations who currently use several brands in their individual markets are aiming to switch to a new brand, Advocate Health.

A letter opposing the planned merger was sent on August 24 by more than 90,000 healthcare and human services professionals who are members of the SEIU Healthcare union. The union raised worries about the Chicago area’s decreasing quality and rising expenses, the dangers that out-of-state ownership poses to Illinois facilities and the communities they serve, and the possibility that Advocate Arora’s services might be reduced.

North Carolina, South Carolina, Georgia, Alabama, Wisconsin, Illinois, and Wisconsin will all be included in the new organization’s geographic reach. It will manage more than 1,000 facilities of care and 67 hospitals, service 5.5 million patients, employ more than 7,600 doctors, and generate combined revenues of more than $27 billion.

While continuing to maintain a significant organisational presence in Chicago and Milwaukee, including a new Institute for Health Equity located in Milwaukee, the new company will have its headquarters in Charlotte, North Carolina.

For the first 18 months, Advocate Aurora Health President and CEO Jim Skogsberg and Atrium Health President and CEO Eugene A. Woods will co-lead the organisation; after that time, Skogsberg will retire and Woods will take over. only CEO. No assets would be transferred as part of the combination, according to the organisations.

According to some, the merger will combine the clinical know-how of both health systems, including population health and medical research, as well as their cutting-edge capacities in data analytics and digital consumer infrastructure. In order to address health inequities in both rural and urban regions, the new organisation intends to spend $2 billion. It has promised to create more than 20,000 new jobs in the communities that support health systems and has committed to becoming carbon neutral by 2030.

Advocate Aurora Health and Beaumont Health looked into a merger in 2020 to build a $17 billion nonprofit health system across Michigan, Wisconsin, and Illinois. However, four months after the merging signed a non-binding letter of intent, the COVID-19 pandemic and other factors caused the system to terminate the agreement. Advocate Aurora Health was formed in 2018 through the merger of Advocate Health Care and Aurora Health Care.

News Summary:

  • Atrium and Advocate’s merger decision is still up in the air
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