In a business move that officials say will create economies of scale, cost savings and more efficient use of resources, it was announced Sept. 30 that Mercyhealth will acquire the financially challenged Freeport-based FHN.
The 120-year-old health system would become an affiliate of Mercyhealth under an agreement Dec. 31 pending approval of the Illinois Health Facilities Planning and Review Board.
“It is important to the communities we serve that we were proactive in finding a strong, advanced system that will continue to expand and grow,” FHN CEO Mark Gridle said in a news release. “By joining forces with Mercyhealth, we are taking an active step to preserve and strengthen care for our patients.”
FHN said that it and other independent health care systems are struggling in the current health care climate. Fewer than 24% of U.S. hospitals are now independent as many have joined larger health care systems to preserve services, FHN said.
Mercyhealth, which recently closed the former Rockford Memorial Hospital on Rockton Avenue in Rockford, is promising to invest $100 million in FHN over the next five years. These investments are to include a new linear accelerator for the Leonard C. Ferguson Cancer Center at FHN Memorial Hospital and a robotic surgical system.
“I have a great deal of respect for Mr. Gridley. He kept the facility operating independently in a tough economic environment where more than 750 hospitals nationwide are at risk of closing, including 16 in Illinois,” Mercyhealth President & CEO Javon Bea said in a release. “This decision ensures that FHN’s legacy of service and high-quality patient care continues long into the future.”
The acquisition announcement comes soon after FHN backed out of a deal with Beloit Health System to open a proposed $21.3 million NorthPointe Neighborhood Hospital in Roscoe.
Although FHN and Mercyhealth claim the merger will lead to enhanced patient care, expanded services and upgraded facilities, Beloit Health System officials said it could reduce options for patients.
“Our community deserves the opportunity to access a full range of healthcare options,” Beloit Health said in a news release. “Unfortunately, Mercy’s acquisition seems to prioritize limiting access rather than expanding or enhancing care.”
Jeff Kolkey writes about government, economic development and other issues for the Rockford Register Star. He can be reached via email at jkolkey@rrstar.com and on X @jeffkolkey.
This article originally appeared on Rockford Register Star: Mercyhealth set to acquire financially strapped FHN
Reporting by Jeff Kolkey, Rockford Register Star / Rockford Register Star
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