No Merger Between Elmhurst Memorial and Northwestern Memorial
CEO tells Crain's the "timing is not optimal" for the two healthcare organizations to merge.
Elmhurst Memorial Healthcare has ended merger talks with Northwestern Memorial HealthCare, according to a Thursday article in Crain's Chicago Business.
Elmhurst President and CEO W. Peter Daniels was quoted in the article as saying, "We recently agreed with Northwestern Memorial that the timing is not optimal for a full affiliation."
Elmhurst Patch and other media outlets reported last October that the two entities were exploring a merger to expand Northwestern's reach into the western suburbs. The merger also would have helped shore up the financial position of EMHC, which is facing hundreds of millions of dollars in debt due to the construction of its new 866,000-square-foot hospital on Brush Hill Road.
It is unclear whether Thursday's Supreme Court ruling upholding the Affordable Care Act had any impact on the decision to end talks. EMHC, along with other hospitals in the state, also is fighting to regain its tax-exampt status.
Elmhurst Memorial Healthcare on Thursday released the following statement:
"Elmhurst Memorial Healthcare and Northwestern Memorial HealthCare have been engaged in a very thoughtful and thorough exploration of a potential affiliation since October 2011. Our organizations recently agreed the timing is not optimal for a full affiliation. The healthcare industry is currently confronted by one of the most challenging and transformative times in our history.
"Northwestern Memorial and Elmhurst Memorial have agreed to terminate the letter of intent to affiliate, ending the period of exclusive discussions. While Elmhurst Memorial and Northwestern Memorial will continue to discuss ways to work together, we each will also continue to explore opportunities with other healthcare organizations that would be beneficial to our patients and the communities we serve."
This story will be updated as more information becomes available.