Iowa Health System may expand in Illinois

Methodist Health Services of Peoria, Ill., is considering joining Iowa Health System.

A non-binding agreement to explore a strategic partnership was announced by the two organizations on Tuesday, March 29. Methodist Health Services would become the eighth senior affiliate hospital of Iowa Health System.

Methodist Health Services Corp. includes the 329-bed Methodist Medical Center in Peoria and provides services at 37 sites in Central Illinois through a network of more than 150 priimary care and specialty physicians. It operates Methodist College of Nursing and has annual revenues of over $400 million.

Iowa Health System CEO Bill Leaver said the two organizations are a good fit.

“Both are quality institutions, both are financially strong, and both are integrated with their physicians. We were searching for a hospital that would add value to our system through quality patient care and excellent patient experience,” Leaver said.

Methodist CEO Michael Bryant said the IHS culture and operating systems are in line with that of Methodist.

He said Methodist will be able to maintain its autonomy including its local board of directors, under IHS' model of local control.

“The assets of the hospital and health system were created in Peoria and will stay in Peoria. We will remain a nonprofit organization where money is reinvested in the hospital, health system and community,” Bryant said.

The look into affiliation with Iowa Health System is due in part to national health care reform, which is placing health systems under more pressure to be more efficient and coordinate care for patient populations, the statement said.

The seven current Iowa Health Systems' senior affiliates are Iowa Health – Des Moines; Waterloo-based Allen Health Systems Inc. Dubuque-based Finley Tri-States Health Group Inc., Sioux City-based St. Luke's Health System Inc., Cedar Rapids-based St. Luke's Healthcare, Fort Dodge-based Trinity Health Systems Inc. and Rock Island, Ill.-based Trinity Regional Health System.