A non-binding Letter of Intent was signed in May 2010 that could result in Rockford Health System joining the OSF Healthcare System.  Over the next several months, the two organizations will complete due diligence and decide if OSF Healthcare System will acquire Rockford Health System.  A decision on whether to move forward with the acquisition is expected this fall. 

“We believe that by combining the talents, technology and facilities of our two exceptional health care delivery systems, we would be positioning Rockford as a regional destination for outstanding medical care and ultimately boost the local economy,“ said Gary Kaatz, President and CEO of Rockford Health System.

 “By joining together, we could create centers of excellence in many clinical areas that would be among the best in the Northern Illinois and Southern Wisconsin Region,” Dave Schertz, President and CEO of OSF Saint Anthony Medical Center, explained.  “That would help us recruit the most highly skilled physicians across all specialties, broaden the continuum of services and improve patient access to the highest level of care.” 

Economies of scale would also promote efficiency and reduce costs at a time when health care reform and the economy are pressuring health care bottom-lines across the country.  Proposed in the Letter of Intent is a new model for OSF Healthcare System, which currently consists of seven acute care facilities across the states of Illinois and Michigan, as well as a long-term care facility and two colleges of nursing. A local community board of directors would be responsible for overseeing the day-to-day, Rockford-based operations of the new Northern Illinois and Southern Wisconsin Region. The board would also be responsible for recruiting, credentialing and privileging the medical staff. 

The combined system, owned by The Sisters of the Third Order of St. Francis, would continue to operate both licensed hospitals consistent with the teachings of the Catholic Church.  The acquisition would include Rockford Health System entities, including Rockford Memorial Hospital, Rockford Health Physicians and Visiting Nurses Association.  Only the Rockford Memorial Development Foundation would remain independent and support health care initiatives throughout northern Illinois.  During this due diligence process, daily operations will remain normal at all OSF and RHS facilities.  If a definitive agreement is reached and the transaction is completed, the combined organizations will then move forward, under the guidance of the local governing board, to develop a health care model that best suits the needs of the region.

“Over the next several months, the process will involve satisfying state and federal regulations, as well as a thorough analysis of both organizations,” Dave said. “We need to learn more about each other in order to decide if this acquisition is in the best interest of those we serve.”