August 31, 2009

BroMenn, Advocate Health Care Continue Move Toward Merger

In anticipation of a pending merger, BroMenn Healthcare and Advocate Health Care announced today that they have filed a Change of Ownership Exemption application with the Illinois Health Facilities and Services Review Board (IHFSRB) as they advance their partnership discussions. The two organizations have been in exclusive talks since they signed a Letter of Intent (LOI) last December.

While BroMenn and Advocate continue to finalize a definitive agreement, today's COE filing makes it possible for inclusion on the October IHFSRB meeting agenda. In the application, Jim Skogsbergh, president and chief executive officer, Advocate Health Care, said, "It is exciting to bring you this merger transaction arising not of necessity, but because we believe Advocate and BroMenn together can be greater than the sum of our collective parts."

Senior leadership from both organizations say that a strategic partnership would allow both not-for-profit health providers to strengthen and align their missions of serving the needs of individuals, families and communities throughout BroMenn's central Illinois service area.

"We believe that this partnership could support and strengthen our community base and mission, assuring that we carry on our tradition of providing quality care close to home," said Roger Hunt, president and chief executive officer, BroMenn Healthcare.

Additional steps required to formalize the partnership include a definitive agreement, and approvals by the IHFSRB and other regulatory agencies.

The BroMenn Healthcare System, headquartered in Bloomington-Normal, Illinois has more than 2,000 employees and has been in business for more than 110 years. The BroMenn System is comprised of BroMenn Regional Medical Center, a 225-bed hospital renowned for its neuro, cardiac, orthopedic and women's services; Eureka Community Hospital, a 25-bed Critical Access; BroMenn Physicians Management Corporation, comprised of 11 medical practices with specialties ranging from primary care and occupational medicine to cardiology, neurology and behavioral health; and the BroMenn Provider Network, a Physician Hospital Organization (PHO). BroMenn also offers residencies in Neurosurgery, Family Practice and Clinical Pastoral Education.

Advocate Health Care, one of the nation's top 10 health systems based on clinical performance, is the largest health care provider in Illinois. Advocate operates more than 200 sites of care across metropolitan Chicago, including nine acute care hospitals, two children's hospitals, four Level I trauma centers (the state's highest designation in trauma care), a home health care company and one of the region's largest medical groups. As a not-for-profit, mission-based health system affiliated with the Evangelical Lutheran Church in America and the United Church of Christ, Advocate contributed more than $373 million in charitable care and services to communities across Chicagoland in 2008