March 02, 2010

State Approves Permit for Clinic’s Purchase

The Illinois Health Facilities and Services Review Board today (March 2, 2010) approved a Certificate of Need (CON) permit allowing for the purchase of Carle Clinic Association by The Carle Foundation.

“We are very pleased with the Illinois Health Facilities and Services Review Board’s positive and encouraging decision, signaling a major milestone in the path towards the purchase of Carle Clinic by The Carle Foundation,” said James C. Leonard, M.D., president and CEO of The Carle Foundation.   The approval of this CON is one more step in the process which will allow these two organizations to move towards becoming a truly integrated delivery system.

In October 2009, The Carle Foundation announced its intent to purchase the assets of Carle Clinic Association, including Health Alliance Medical Plans, for $250 M.  This purchase has been approved by the Boards of both organizations and the physician owners of the Clinic.

“We believe that by becoming a single organization, Carle will become an even stronger health care provider—one that is better positioned to flex with the changing healthcare environment while at the same time delivering high-quality care to the residents of this region.  Furthermore, it will create a place where physicians will want to work when medical professionals are in high demand nationally and the supply becomes increasingly short, Dr. Leonard stated.

With April 1 as The Carle Foundation’s target date for closing on the purchase of Carle Clinic and its assets, there is just one regulatory hurdle to cross.  The final approval outstanding is that of the Illinois Department of Insurance. The deadline has passed for Federal regulators to inquire about the proposed integration.  Although they could ask for information at a later date, the proposed integration did not raise any questions.

Dr. Leonard pointed out that once the two organizations become a single, legal entity, the transition into one, efficient organization will have just begun.  “Bringing together two large, complex organizations is a lengthy process; but, throughout, high quality health care will remain our top priority.  And, when there are bumps along the way—and we fully expect that there will be—we ask for our patients’ and community’s understanding, cooperation and patience,” he concluded.