Elmhurst Memorial healthcare announced its plan today to merge with Naperville-based Edward Hospital & Health Services to become one of the larger integrated health systems in the state.

The proposed merger would create a three-hospital health system – Edward, Elmhurst Memorial and Linden Oaks at Edward – with revenues of more than $1 billion and more than 50 locations across a service area of 1.7 million residents, according to a press release.

The system would employ nearly 7,600 and have more than 1,680 physicians on staff.

Edward President and CEO Pam Davis will be named CEO of the new health system upon completion of the merger.

Elmhurst Memorial Healthcare Spokesperson Sheri Scott would not say whether Elmhurst Memorial President and CEO Peter Daniels would remain with the hospital after the merger, or in what capacity.

“Further decisions about leadership roles have not yet been made,” Scott said in an email. “During these discussions, both hospitals will operate business as usual.”

The proposed merger comes about seven months after a possible merger between Elmhurst Memorial Healthcare and Northwestern Memorial HealthCare fell through.

Last week the parent boards of both Elmhurst Memorial and Edward Hospital agreed to enter into a letter of intent to merge. Before the merger can be finalized, Edward and Elmhurst Memorial will complete a review process in the coming months.

Some aspects of the proposed merger also are subject to state and federal regulatory review. Once approved, the merger could be completed in mid-2013, according to a press release.

“Edward is a great fit with Elmhurst because of our similar patient-centered and physician-driven cultures, our wide range of services, our shared commitment to providing high quality care, and our complementary service areas," Daniels was quoted in a press release. "We’ll be big enough to offer a wide variety of locations and the latest services across a wide geography, and nimble enough to provide for, and react to, the local needs of our communities.”

The merger will build upon the growth of Illinois Health Partners – Edward’s partnership with DuPage Medical Group and many independent physicians – to jointly manage the care of nearly 100,000 HMO patients in the region.

DuPage Medical Group has more than 370 physicians, including a strong presence in the communities also served by Elmhurst Memorial and Edward.

The hospitals said the merger will benefit the two institutions by improving coordination of care in the region as Edward and Elmhurst Memorial medical staff share best practices and clinical protocols.

The merger will also build upon their relationships with affiliated and independent physicians. Edward Medical Group and Elmhurst Memorial’s affiliated practices including Elmhurst Clinic, LLC, will remain "of key strategic importance" as will hundreds of independent physicians at both entities including DuPage Medical Group practitioners.

“With this transaction we can assure residents of our local communities that we will preserve both Edward and Elmhurst Memorial as vital healthcare resources for years to come,” Davis was quoted in a press release. “The delivery of healthcare is changing rapidly. Hospitals are under tremendous cost pressure while being asked to take a much more active role in managing the overall health of patients. Together, Edward and Elmhurst can enhance the quality and cost effectiveness of healthcare while still maintaining our strong local community focus.”

The hospitals also plan to continue partnerships with other major physician groups such as Advocate Midwest Heart Specialists which has a large presence at Elmhurst and Edward.

The merger will also improving access to clinical services, the hospitals said, and increase efficiency.
"With shrinking reimbursement for hospitals, healthcare reform demands that we become more efficient to lower healthcare costs," the press release stated.

In June 2011, Elmhurst Memorial Healthcare opened a new, 866,000-square-foot hospital with 259 private patient rooms, a modern emergency department and technologically advanced surgical suites.

Founded in 1907 as a tuberculosis sanitorium and converted to a community hospital in 1955, Edward Hospital in Naperville has 309 private patient rooms and 4,400 employees, including 1,350 nurses and a medical staff of 1,000 physicians comprised of independent members of the medical staff, employed physicians and independent contractors. Edward Plainfield at 127th Street and Van Dyke Road saw more than 100,000 patient visits last year for a wide variety of services.

Linden Oaks at Edward is a 108-bed behavioral health hospital on Edward’s Naperville campus with outpatient locations in Naperville, Plainfield, St. Charles, Woodridge and Yorkville.