Joining forces could give the two Chicagoland systems a leg up in the region’s fragmented and competitive hospital market — if regulators approve.

Rush and Endeavor presented the merger as a marriage of equals. Endeavor is providing a sizable infusion of cash to bolster key initiatives and taking the reins of the C-suite, with current CEO J.P. Gallagher tapped to serve as president and CEO of the combined system.

However, the system will operate under the Rush name, given the brand’s “strong national reputation and position as a leading academic institution,” according to the release. Its board will be led by a chair from Rush, and include include 20 people comprised equally of representatives from Rush and Endeavor.

Chicago-based academic medical center Rush operates three hospitals in the area: Rush University Medical Center in Chicago, Rush Oak Park Hospital in Oak Park and Rush Copley Medical Center in Aurora. Its flagship medical center has been frequently named one of the top hospitals in the country, and has a reputation for technological innovation along with high-quality care.

Endeavor, formed in 2022 from the merger of North Shore University Health System and Edward-Elmhurst Healthcare, is the third-largest system in Illinois, with nine hospitals in the northeast.

Hospital mergers are picking up, driven by smaller operators looking for larger partners to help them weather today’s difficult operating environment, and by stable systems seeking to strengthen their competitive advantage.

The proposed deal between Endeavor and Rush reads as the latter. Neither system is struggling financially — Endeavor brought in more than $663 million in net income during its most recent fiscal year , according to Becker’s Hospital Review.

Source link