CGH-Sterling Rock Falls Clinic merger finalized

STERLING – CGH Medical Center and the Sterling Rock Falls Clinic are one.

Their merger, first announced in late November, was finalized Friday, CGH said in a news release Tuesday. The city-owned hospital paid $11.5 million for the physician-owned clinic.

"The combination of the two organizations will position CGH Medical Center to be a successful, locally controlled entity now and into the future – with 1,350 employees and a budget of $180 million," the release said.

Ed Andersen is CGH's president and CEO.

"Joining with the Sterling Rock Falls Clinic in a fully integrated health system is truly a natural progression of our long-standing relationship," Andersen said in the release.

"Together, we have many goals for the newly formed organization."

Among them are recruiting and retaining doctors and other medical professionals, meeting the requirements of the federal Health Care Reform Act, streamlining patient care and billing, improving operating efficiency and avoiding duplication of equipment.

In addition to the two main campuses at LeFevre and Miller roads in Sterling, there are physician offices in downtown Sterling, and on East Lynn Boulevard; in downtown Rock Falls; and in Dixon, Walnut, Tampico, Prophetstown, Morrison, Polo and Milledgeville.

"We know many people will ask, why now?" Andersen said.

"In addition to the goals we have set for the organization, there is a very strong trend towards physicians being employed by hospitals, and we believe that Federal Health Care Reform will result in this trend being accelerated.

"In fact, most of the hospitals in our immediate area have already consolidated, with both Freeport and Dixon having the hospital and physicians combined in a single entity."

The integration period could take anywhere from a year to 18 months, Andersen has said.

CGH is one of only 3 city-owned hospitals in the state, and the city will continue to own the combined entity.

On Dec. 20, the City Council unanimously voted to amend the structure of the hospital board, so that the 11 members now will include four physicians, up from two.

CGH is self-sustaining, and has not levied taxes in the last 30 years.

There are no immediate plans to change the name of either facility.

On the Web

For more information on the services provided by CGH Medical Center and the Sterling Rock Falls Clinic, go to www.cghmc.com or www.srfc.com online.