Rush University and Endeavor Health, two major Chicago-area health systems, announced plans Wednesday to merge in a deal that impacts 12 hospitals, 46,000 employees and 400 clinics and would create one of the largest health systems in Illinois.
The plans were announced in a joint press release Wednesday, with the organizations saying the intend to “come together to form a leading, integrated academic health system.”
Endeavor President and CEO Gerald “JP” Gallagher said the merger would create a better and more connected health system, with patients benefiting from “improved access, advanced research and nationally recognized, high-quality care close to home.”
The combined system will operate under the Rush name, giving the academic health system a larger presence in the Chicago area and suburbs. Overall, the merger is intended to create increased access across a broader geography.
“The system will embody and expand the foundational values for which both systems are known: excellence, access and health equity, backed by a leading university that drives research and trains our future healthcare leaders,” Dr. Omar Lateef, president and CEO of Rush University System for Health and Rush University Medical Center said in the announcement. “As a unified system, we will expand upon the work Rush has done on the West Side of Chicago to strengthen our impact in communities across the region to ensure more patients benefit from the expertise, innovation and compassion that define us.”
As part of the deal, Endeavor will invest $1 billion in the new system, according to the announcement. A “significant portion” of the funding will support community partnerships, academic and research initiatives, care innovation and efforts to address health disparities.
The merger is expected to close in early 2027, following regulatory review and approval. Upon close, Gallagher will become President and CEO of the new system. It will be governed by 20-person board made up of equal representation from Rush and Endeavor.
Rush, a nonprofit and academic health system, has three hospitals in the Chicago area: Rush University Medical Center in Chicago, Rush Oak Park Hospital and Rush Copley Medical Center in Aurora. The system’s Chicago hospital is frequently ranked among the top hospitals in the country by US News & World Report.
Endeavor Health, Illinois’ third largest health system, operates nine hospitals including eight Magnet acute care hospitals, in Naperville, Elmhurst, Evanston, Glenview, Highland Park, Arlington Heights, Skokie and Chicago. The system in 2022 formed after the merger of North Shore University Health System and Edward-Elmhurst Healthcare.
It was not immediately what impact, if any, the merger would have on patients, but a spokesperson for the hospitals said the move will not mean closures.
“They would create one of largest health systems in Illinois,” said Dr Lawton Robert Burns, a professor at the Wharton School “I think that’s the goal. Is just get big and be bigger and leap frog some of the local competition. There’s no logic or rationale for why they’re doing this except to get bigger.”
The Illinois Department of Public Health said it was aware of the reports of a merge, but that it has yet to receive an application for a “certificate of exemption for a change of ownership.”