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More Consolidation in Chicagoland: Endeavor, Rush Seek to Merge

20 hours ago 14

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Nine-hospital Endeavor Health, which was formed through a January 2022 merger between NorthShore University HealthSystem and Edward-Elmhurst Health, plans even more consolidation in the Chicago area with the announcement of a merger proposal with Rush University System for Health. 


The combined nonprofit organization, operating under the Rush name, would have 12 hospitals and more than 400 care sites. The future organization will have more than 46,000 employees and clinicians serving more than 2 million patients annually across northern Illinois and Northwest Indiana. 

”Together, Rush and Endeavor Health have an opportunity to create a stronger, more connected health system that sets a new standard for how care is delivered and experienced across our communities," said Gerald "J.P." Gallagher, president and CEO of Endeavor Health, in a statement. "Patients and communities will benefit from improved access, advanced research and nationally recognized, high-quality care close to home.”

The transaction is targeted to close in early 2027, following regulatory review and approval.

Healthcare Innovation recently interviewed Sean O'Grady, president of acute and ambulatory operations at Endeavor Health, about some of the benefits of the integration that created Endeavor as well as the pressure health systems like Endeavor are starting to see from Medicaid cuts — and why it may get worse.

Upon receiving regulatory approval, Gallagher will be named president and CEO of the unified system. Omar Lateef, D.O., president and CEO of Rush, will continue in this role through the close of the transaction. He will then serve as CEO emeritus and strategic advisor to the CEO. A 20-person system board will be appointed, with equal representation from Rush and Endeavor Health board members and led by a chair from the Rush system.

"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,” said Lateef in a statement. 

An incremental $1 billion investment, funded by Endeavor Health, will advance community impact, academics and research, and quality and care innovation in communities across the region, Endeavor said. A significant portion of the investment will be dedicated to community partnerships addressing social determinants of health and creating a sustainable infrastructure to support the underserved.

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