Ever since its planned merger with Advocate Health Care was crushed by the Federal Trade Commission in 2017, NorthShore University HealthSystem has looked for opportunities to expand its reach in Chicagoland. Half-way through 2019, it finally happened.
Swedish Convenant Health, which operates a 216-bed acute care community hospital on Chicago’s North Side, has agreed to join the four-hospital NorthShore system. Swedish Covenant includes the Swedish Covenant Medical Group, medical fitness center Galter LifeCenter, the Swedish Covenant Hospital Foundation, and a managed care organization, Swedish Convenant Physician Partners.
The target posted approximately $273.5 million in revenue for the 12 months ending on September 30, 2018 and EBITDA of $42.7 million.
This deal is part of the year’s hospital M&A trend, where independent hospitals are trying to join larger systems. Two of the latest announcements came in late June as Union Hospital of Cecil County (96 beds) in Elkton, Maryland signed a letter of intent to explore a merger with Wilmington, Delaware-based Christiana Care (1,126 beds), and Patchogue, New York-based Long Island Community Hospital (formerly Brookhaven Memorial, 232 beds), the last independent hospital on Long Island, has signed a letter of intent with Stony Brook Univerity Hospital.
