Methodist Health Services Corporation and Iowa Health System (IHS) have signed an agreement establishing a strategic affiliation between the two nationally recognized health systems. Bill Leaver, President and CEO, and Gene Blanc, Chair, of Iowa Health System and Michael Bryant, President and CEO, and Karen Stumpe, Chair, of Methodist Health Services Corporation, signed the agreement Thursday, June 9, 2011, in Chicago. The two healthcare organizations announced plans in late March to enter into a strategic affiliation agreement. The agreement was signed Thursday, subject to obtaining necessary regulatory approvals, including the approval of the Illinois Health Facilities and Services Review Board.
Once the regulatory approvals are received and closing occurs, Methodist will become the eighth senior affiliate of IHS, the sixth largest nondenominational health system in the United States with annual revenues of $2.3 billion. IHS has relationships with 25 hospitals in Illinois and Iowa, employs nearly 20,000 employees and sees more than 2.5 million patient visits per year.
Methodist President and CEO Michael Bryant said this alliance will provide Methodist with a strategic partner that will support and strengthen Methodist as a regional tertiary medical center and comprehensive health care system. As a result of health care reform, health systems are under increasing pressure to coordinate care for patient populations while operating with ever greater efficiencies.
The agreement is built around core principles that include:
1. Sharing a strategic vision of a partnership between regional providers that recognizes the value and importance of meaningful local governance.
2. Recognizing the importance Methodist places on its long-term commitment to the communities it serves.
3. A commitment from IHS to support strategic initiatives that ensure Methodist will retain its nationally recognized position of leadership in quality and service.
Because IHS offers a decentralized model of local control, Methodist will maintain its autonomy including its local board of directors. “The assets of the hospital and health system were created in Peoria and will stay in Peoria. We will remain a not-for-profit organization where money is reinvested in the hospital, health system and community,” Bryant said. “IHS recognizes Methodist’s commitment to our community and the dedication of the people who have invested their livelihood in Methodist for 111 years.”