Sept. 04--Lurie Children's Hospital of Chicago said Friday that it plans to acquire its first physician practice, a late arrival to consolidation sweeping the health care industry.
Lurie Children's has agreed to purchase Town Country Pediatrics, a 20-doctor group with two offices in Chicago and a third in Glenview.
Financial terms of the deal, which is expected to close by the end of the year, were not disclosed.
Dr. Diane Holmes, president of Town Country, explained that in the current regulatory environment it is more complicated and expensive for physician groups to remain independent. Her group was founded in 1972.
"The challenges of keeping up with infrastructure, regulatory bodies and information technology puts me further away from the practice of pediatrics, and that's very frustrating," said Holmes, who has been practicing for 31 years. "When we looked at our options we began to realize that partnering with Children's was just a great fit."
For Lurie Children's, the acquisition is a sign of the new health care environment. The deal is a departure from its long-held strategy of focusing on treating the sickest and most medically complex cases while supporting independent physicians who provide primary care.
But hospitals are now being asked to manage the health of their patient populations and being held financially accountable for meeting cost and outcomes goals. That is driving stronger alignment with physicians in the last few years.
"In the new health care environment, aligning providers along the continuum of care has become more important," said Monica Heenan, senior vice president and chief ambulatory officer at Lurie Children's.
The hospital, which employs about 450 specialists, said it plans to continue to operate Town Country's three offices.
asachdev@tribpub.com
