Advocate-Aurora Deal Enters ‘Final Step’ of Approval Process
With approvals from Illinois regulators and the FTC, the two Midwestern health systems just need clearance from Wisconsin regulators and a final plan for administrative restructuring.
The two systems are waiting on clearance from Wisconsin regulators, who oversee Milwaukee-based Aurora. Chicago-based Advocate secured approval from its home state regulators and the FTC, which had blocked its prior proposed merger with NorthShore University Health System last spring.
“We are excited to move one step closer to bringing our two great organizations together to reimagine the possibilities of health for those we serve,” Aurora spokesperson Tami Kou said in a joint Advocate-Aurora statement this week to HealthLeaders Media.
The merger, which will be based on a “50-50” structure, is intended to allow both systems to retain their respective CEOs and forgo layoffs. In total, the joint company will employ 70,000 people across hundreds of facilities and 27 hospitals.
If approved, Advocate-Aurora would have a projected operating revenue of $11 billion, making it one of the 10 largest health systems in the country.
“Advancing through the FTC’s review process was a key milestone in addition to securing regulatory approval in Illinois,” Kou said. “We look forward to the final step of receiving approval in Wisconsin before our anticipated closing this spring.”
The state and federal regulatory approvals come two weeks after Advocate announced it would adopt the same electronic health records system as Aurora.