SwedishAmerican merges, becomes division of UW Health
Online Staff Report
The Illinois Health Facilities Planning and Services Review Board unanimously approved the merger of SwedishAmerican with UW Health Dec. 16. This Illinois regulatory step was required to move forward with the merger and the change of ownership of SwedishAmerican to University Health Care, Inc.
In addition, the Federal Trade Commission has no issues or opposition to the merger.
With both state and federal approvals, the merger is deemed complete, and SwedishAmerican now becomes a division of UW Health.
“I’m very pleased that we are now able to move forward as a division of UW Health to enhance our clinical strength and create remarkable patient experiences of the highest quality in northern Illinois,” said Dr. Bill Gorski, president and CEO of SwedishAmerican.
Mike Dallman, president and CEO of University Health Care, Inc., said: “UW Health pursued a partnership with SwedishAmerican because we both share a commitment to enhancing the health of the communities we serve. We are aligned in our collaboration to meet the challenges of a changing health care environment together.”
SwedishAmerican Health System and UW Health had signed a definitive agreement to merge the organizations and make SwedishAmerican an integral part of UW Health in November. The definitive agreement follows a letter of intent announced in April 2014.
SwedishAmerican maintains its local board with responsibility for local governance and policy making. Management remains local with responsibility for day-to-day operations and decision-making. Dr. Bill Gorski continues as the president and CEO of SwedishAmerican and will report to both the SwedishAmerican board and the board of University Health Care, Inc., the not-for-profit organization that facilitates relationships with health systems on behalf of UW Health.
The agreement includes $255 million in capital over the next five years invested in the Rockford market for information technology, hospital infrastructure, and new clinical care locations. Combined, the organizations’ net revenues are approximately $3 billion.
UW Health is an academic health center associated with the University of Wisconsin-Madison. It includes the following:
• UW School of Medicine and Public Health with its core missions of education, basic, translational, clinical and population health research;
• UW Hospital and Clinics, Magnet-designated and rated the #1 hospital in Wisconsin by US News and World Report, a 592-bed regional referral center that includes the 87-bed American Family Children’s Hospital;
• The Carbone Cancer Center, one of 41 federally designated comprehensive centers for cancer treatment and research with a network of affiliates;
• The nation’s seventh largest organ transplant program; and
• UW Medical Foundation, the school’s faculty group practice with approximately 1,300 physicians in 98 specialties.
Posted Dec. 17, 2014