Rush University & Endeavor Health Plan $11 Bn Merger to Create 12-Hospital System

The combined organization would become Illinois' largest health system by hospital count if the transaction receives the required approvals.

Rush University System for Health and Endeavor Health have announced plans to merge into a 12-hospital nonprofit health system with nearly $11 billion in annual revenue, more than 400 care sites and a workforce of over 46,000 people. The combined organization would become Illinois' largest health system by hospital count if the transaction receives the required approvals.

Announced on October 14, the proposed merger brings together Chicago-based Rush, a three-hospital academic health system, and Evanston-based Endeavor Health, which operates nine hospitals. The combined system would serve more than 2 million patients annually across Northern Illinois and Northwest Indiana, including through a network of more than 3,400 clinicians.

The organizations are targeting an early 2027 closing, although a regulatory filing reportedly indicates a potential completion date in the fourth quarter of 2026. The transaction remains subject to regulatory and other required approvals.

Combined System to Operate Under Rush Name

The merged organization is expected to operate under the Rush name, reflecting the academic health system's national reputation and university affiliations. Endeavor Health would contribute its broader community-based network, clinical institutes and primary care-embedded clinical genomics programs.

Under the proposed governance structure, the combined system would have a 20-member board with equal representation from both organizations. A representative from Rush would serve as board chair.

Gerald “J.P.” Gallagher, Endeavor Health's president and CEO, is expected to lead the combined organization as president and CEO if the deal closes. Omar Lateef, D.O., president and CEO of Rush University System for Health and Rush University Medical Center, would transition to CEO emeritus and strategic advisor to the CEO.

$1 Billion Investment in Community Health and Research

The agreement includes a $1 billion investment commitment from Endeavor Health to support community impact, academic programs and research, and care quality and innovation.

The proposed allocation includes $300 million for community impact, $500 million for academics and research, and $200 million for care quality and innovation. The organizations have not disclosed a timeline for the investment. They said a significant portion would support community partnerships addressing social determinants of health and infrastructure for underserved populations.

Financial Performance of Both Health Systems

Rush reported $4.4 billion in total operating revenue for the 12 months ended June 30, 2026, according to unaudited financial results. The organization recorded $56.6 million in operating income, a 1.3% operating margin, and $293.9 million in excess revenue over expenses.

Endeavor Health reported $6.4 billion in operating revenue for the year ended December 31, 2025, alongside a $33.9 million operating loss. Excluding legal settlement costs related to claims against a former physician, the system reported $28.5 million in operating income.

If completed, the merger would place the combined organization ahead of major Illinois competitors, including Northwestern Medicine, Advocate Health Care and Prime Healthcare, by hospital count.

Clarify the conflicting closing dates. Add a stronger merger impact angle

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