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ABHS and Adventist form Joint Operating Company

ABHS and Adventist form Joint Operating Company

Alexian Brothers Health System (ABHS), an Ascension ministry based in Arlington Heights, Illinois, and Adventist Midwest Health (AMH), part of Adventist Health System, Altamonte Springs, Florida, have completed all the legal and regulatory steps to make their Joint Operating Company (JOC) official, creating the third-largest health system in Illinois.

The newly integrated healthcare system encompasses five ABHS hospitals and four AMH hospitals located in suburban Chicago and will serve a combined population of more than 3.8 million people.

The JOC allows the two separate organizations to preserve their respective religious identities and mission priorities, and to integrate operations while maintaining separate ownership of their assets. The affiliation will result in a notably diverse physician provider network, bringing together more than 3,000 physicians to offer better coordinated, more comprehensive care for patients.

ABHS and AMH announced last June that they signed a non-binding letter of intent to form the JOC. The health systems then engaged in due diligence, culminating in the definitive agreement announced in October. After legal and regulatory approvals, including a vote from the joint members of the new organization’s Board of Directors on February 4, 2015, the two entities legally entered into a Joint Operating Company.

“Making our partnership official is another significant milestone, and we continue our work together to build a comprehensive, integrated health system that will serve almost 4 million residents of our service area,” said Mark A. Frey, ABHS President and Chief Executive Officer. “Our focus will remain on our patients and our communities – in order to deliver high-quality, compassionate care to those who need it most.”

“The array of services that our two systems can offer together will provide our communities with high-quality care, while reducing cost and overhead,” said David L. Crane, AMH President and Chief Executive Officer. “We share a charitable mission and a commitment to providing coordinated, person-centered care.”

“This is an important step in Ascension’s commitment to building regional clinically integrated systems of care to better serve individuals in the markets we serve across the nation,” said Robert J. Henkel, FACHE, Executive Vice President, Ascension, and President and Chief Executive Officer, Ascension Health. “Networks such as the one between Alexian Brothers and Adventist promise to provide better, more coordinated care as the country’s health system evolves from one based on volume to one based on value.”

Although ABHS and AMH represent different faith traditions, they share common missions and values, and this similarity is a key factor in their affiliation, Frey and Crane said. The next step is to find a name that encompasses the rich history and brand of both organizations.

“Now we turn our focus to developing a name for the newly integrated health system that conveys our shared values, such as our commitment to offering access to high-quality care and an excellent patient experience, and our vision for the future,” Frey said. “Even after we develop a new name for our organization, the quality care and patient experience we deliver every day will be what truly defines us.”

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