Advocate Aurora Announces National Merger With Atrium Health

DOWNERS GROVE, IL — Advocate Aurora Health announced Wednesday plans to merge with Charlotte, N.C.-based Atrium Health to create a leading health care system. The companies will form Advocate Health Atrium Health, becoming the fifth-largest hospital chain by revenue in the country, Crain's Chicago Business reported.

“Together, we can do more, be better and go faster,” Jim Skogsbergh, president and chief executive officer of Advocate Aurora Health, said in a news release. “This combination harnesses our complementary strengths and expertise of our doctors, nurses and teammates to lead health care’s transformation for those we are so proud to serve.”

Both health care organizations bring combined clinical experience, including in medical research and population health, as well as advanced capabilities in data analytics and digital consumer infrastructure. Advocate Aurora and Atrium Health cite six key areas where the merger will have an impact, including:

• Clinical pre-eminence and safety
• Health equity
• Affordability
• Next-generation workforce
• Learning and discovery
• Environmental sustainability

The companies also announced a $2 billion pledge to correct health inequities across both rural and urban underserved communities, their commitment to achieve carbon neutrality by 2030 and a pledge to create more than 20,000 new jobs across the communities they serve.

The new organization will have a combined footprint across Illinois, Wisconsin, North Carolina, South Carolina, Georgia and Alabama. It will serve 5.5 million patients, operate more than 1,000 sites of care and 67 hospitals, employ more than 7,600 physicians and nearly 150,000 teammates and have combined revenues of more than $27 billion.

The Advocate Aurora Health and Atrium Health Boards of Directors unanimously approved the agreement, which is subject to regulatory review. A decision is expected later this summer.

“We’ve long admired Atrium Health’s nationally recognized clinical excellence and commitment to health equity,” said Michele Richardson, chair of Advocate Aurora Health’s board of directors. “Given our combined reach, coupled with our talented physicians, nurses and staff, we are uniquely positioned to lead health care’s transformation and create a platform for innovation.”

Edward J. Brown III, chair of Atrium Health’s board of directors, said both organizations "share a bold vision for the future to create a consumer-first system aimed at improving the lives of individuals across the diverse communities we serve."

A board of directors comprising an equal number of members from Advocate Aurora and Atrium Health will govern the enterprise. Brown will chair the board of directors until December 31, 2023, and Richardson will assume leadership for the immediately succeeding two-year term.

Skogsbergh and Woods will serve as co-CEOs for the first 18 months, after which Skogsbergh will retire and Woods will become the sole CEO.

The Advocate Aurora and Atrium Health brands will continue to be used in their respective local markets, will operate under the umbrella of Advocate Health. The Atrium-owned Wake Forest University School of Medicine will serve as the academic partner of the combined entity. The new organization will be headquartered in Charlotte, while continuing to maintain a strong organizational presence in Chicago and Milwaukee, including a new institute for health equity located in Milwaukee.

Advocate Aurora told Crain’s Chicago Business that it doesn’t have plans for layoffs in Illinois or Wisconsin as a result of the merger. The health care system is still looking to fill vacancies left by workers who exited the health care workforce during the COVID-19 pandemic. The new Advocate Health said it plans to add 20,000 jobs across the business.

Advocate Health Care merged with Aurora Health Care in 2017. Skogbergh credited the merger with allowing the health provider to survive the COVID-19 pandemic.

The company operates 11 hospitals in Chicago metro area, including Advocate Christ (Oak Lawn), Advocate Illinois Masonic (Chicago), Advocate Lutheran General (Park Ridge), Advocate Trinity (Chicago), Advocate Condell (Libertyville), Advocate South Suburban, Advocate Good Samaritan, Advocate Good Shepherd (Barrington), Advocate Sherman (Elgin), and Advocate Children’s Hospitals in Park Ridge and Oak Lawn.