Palos Health and Loyola Medicine have taken steps toward merging the two hospital systems, the companies announced Monday.
A nonbinding letter of intent was signed as the two health care organizations are moving forward in a due diligence process that’s expected to take several months.
If the deal is finalized, Palos Health would join Loyola, a member of Trinity Health, a nonprofit health group that’s part of one of the nation’s largest Catholic health care systems.
“By fully integrating with Loyola Medicine, we will enhance our clinical strength, increase our flexibility and provide our community with more comprehensive care across an expanded region,” Palos Health President and CEO Terrence Moisan said in a news release.
Financial terms were not disclosed.
Palos Health’s network includes over 3,000 employees across Palos Hospital in Palos Heights, as well as Palos Medical Group, Palos Health South Campus in Orland Park, Palos Imaging and Diagnostics, Palos Home Care and Hospice and Chicago Health Colleagues. Palos Hospital has 425 licensed beds and more than 600 physicians.
Loyola Medicine’s network employs more than 1,700 physicians and comprises Loyola University Medical Center, Gottlieb Memorial Hospital and MacNeal Hospital. The health care company also has other primary care centers.
Shawn Vincent, president and CEO of Loyola Medicine, said the partnership with Palos could provide “greater value to the members of [their] communities.”
“We have built a strong relationship with Palos over the years,” Vincent said. “Many physicians at Palos Health trained at Loyola University Medical Center and we have been providing tertiary care to Palos patients in the south and southwest suburbs for decades.”