Carle Hospital, Clinic Move Closer to Merger

A not-for-profit hospital and its sister organization, a for-profit clinic, propose integrating in to one not-for-profit group.

Carle Foundation Hospital and Carle Clinic Association have operated as separate entities, but now the Carle Foundation wants state approval for a 250 million dollar purchase of the clinic by the hospital organization. The deal would also involve Health Alliance Medical Plans, which would remain a for-profit organization.

Carle says in a press release that the merger would reduce costs and increase cooperation between the hospital and clinic. The physicians who have a piece of ownership in Carle Clinic would become Carle Foundation employees. They have yet to approve the merger, as do members of the state's Health Facilities and Services Review Board. They meet November 4th in Urbana to hear comments.