Four South Chicago Hospitals Announce $1.1B Hospital Merger Deal

Four hospitals on Chicago’s South Side recently announced a hospital merger agreement to form a single system worth an estimated $1.1 billion. 

Advocate Trinity Hospital, Mercy Hospital & Medical Center, South Shore Hospital, and St. Bernard Hospital have signed a nonbinding agreement to expand access to preventive care and quality services, reduce drastic health inequities, and provide economic development, jobs, and training programs.

“Significant challenges require all stakeholders to be at the table and be part of the solution,” Carol Schneider, president of Mercy Hospital & Medical Center, a member of Trinity Health, stated in the announcement. “We have a unique opportunity to come together around a common vision to serve patients in a better way that strengthens our communities.” 

Under the agreement, each provider will contribute existing hospital assets to and help capitalize the new system, the announcement highlighted. The new system will have independent leadership and an independent board of directors. A CEO and leadership team will be named following the signing of a definitive agreement, which is expected by the middle of this year.

Health inequities continue to be an issue in local communities despite efforts to tackle the ongoing problem. The southern region of Chicago in particular continues to see significantly lower life expectancy, higher incidences of chronic disease, and various other disparities. Additionally, food insecurity, housing, and trauma issues are on the rise as well, officials from the hospitals reported. 

While the providers are addressing these inequities, they are calling on neighborhood leaders and area residents to participate in a series of community input sessions, which are tailored specifically to community needs, the hospital merger announcement stated. 

Community input will help future hospital services, including the expansion of urgent care, ambulatory surgery, infusion therapy, and behavioral health services at community health centers, as well as specialty care, imaging and diagnostic services, the announcement stated.

“We look forward to input from our patients and communities,” said Tim Caveney, president and chief executive officer of South Shore Hospital. “Empowering our neighborhoods, improving access to care and making critical economic investments is what’s right for the South Side of Chicago and what’s necessary for our long-term health and wellness.” 

The core goal of the new system is to transform care delivery for residents through a multi-year investment plan.  After much analyzing, the four providers decided on two primary needs: to expand access to quality primary and preventative care services by constructing community health centers and to build at least one new, state-of-the-art destination hospital. 

The estimated capital investment to achieve these goals is $1.1 billion.

“Working individually, our hospitals will not be able to provide sustained, quality care on the South Side,” said Charles Holland, president and chief executive officer of St. Bernard Hospital. “We have to aggressively address the need for better health care among tens of thousands of Chicagoans. By forging a system that can better respond to and manage the chronic illnesses that are so pervasive in our communities, we can truly achieve greater health equity and narrow significant disparities in access to quality care and the resulting outcomes.” 

The four providers also stated they are committed to ensuring new facilities open before existing facilities close and finalizing the deal with a net increase in jobs in the region, with re-deployment and re-training programs in place. In addition, the provider will seek philanthropic involvement to support the new system and help achieve health equity for the community.

“This is the right thing to do for those we serve,” said Rashard Johnson, president of Advocate Trinity Hospital. “We have a moral obligation to address health equity and that requires a transformational approach to how, when and where we deliver care.”