Evanston Hospital will operate under the Rush name if a proposed merger between its parent company, Endeavor Health, and Rush University System for Health goes through.

The two nonprofit systems announced the deal Wednesday, Oct. 14. The combined organization would include 12 hospitals, more than 46,000 employees and over 400 care sites, making it one of the largest health networks in Illinois, Evanston Now reported.

Endeavor Health, headquartered in Evanston, operates nine hospitals across the Chicago suburbs. Rush runs three hospitals in Chicago, Aurora and Oak Park. Rush University Medical Center tied with Northwestern Memorial Hospital for best hospital in Illinois this year in U.S. News & World Report rankings, according to the Chicago Tribune.

The recently adopted Endeavor brand, which replaced the former NorthShore University HealthSystem name in late 2023, would be dropped. Individual hospitals would keep their location names under Rush branding, according to the Chicago Sun-Times.

Endeavor President and CEO J.P. Gallagher would lead the combined system. Dr. Omar Lateef, Rush's president and CEO, who had previously announced plans to retire in 2027, would continue through the close of the deal and then serve as CEO emeritus and strategic advisor, according to Evanston Now. A 20-person board with equal representation from both systems would govern the merged organization, with a chair from the Rush system.

The deal targets an early 2027 close, pending state and federal regulatory approval.

$1 billion from Endeavor's endowment

As part of the agreement, Endeavor would invest $1 billion from its endowment into the new system, the Tribune reported. The breakdown: $500 million for Rush University to expand programs, research and clinical trials; $300 million to reduce health care disparities; and $200 million to improve quality and care.

Gallagher called recent Chicago-area hospital closures and service cuts "sobering" and said the merger represents the opposite direction, according to the Tribune. "This is us moving in an opposite direction," he said.

Both organizations have had positive operating margins so far in 2026, according to financial statements cited by the Tribune. But Endeavor posted operating losses of $494 million in 2024 and $33.9 million in 2025. Much of the 2024 loss stemmed from $453 million in settlement expenses tied to patient claims alleging sexual abuse by a former Endeavor doctor, according to a financial disclosure.

Gallagher said those earlier losses did not motivate the merger. He told the Tribune that Endeavor first reached out to Rush about a potential deal in March.

Regulatory hurdles and price concerns

The merger still needs approval from state and federal regulators. The Illinois Department of Public Health said it had not yet received an application for a certificate of exemption for a change of ownership, NBC Chicago reported.

Endeavor was blocked from a previous merger attempt. The Federal Trade Commission (FTC) challenged a planned deal between NorthShore, as Endeavor was then known, and Advocate Health Care. The two systems walked away in 2017 after a federal judge ruled in the FTC's favor, the Tribune reported.

Gallagher said he has already begun discussions with regulators and expects the process to go smoothly.

Zachary Levinson, project director of the KFF Project on Hospital Costs, told the Sun-Times that hospital consolidation is part of a national trend. He warned it can raise prices. Levinson said research shows consolidation has led to higher prices without clear effects on quality, according to the Sun-Times.

Gov. JB Pritzker said he spoke with both CEOs and was assured there are no plans for layoffs or facility closures, the Tribune reported.

Nurses push for union representation

The announcement lands as nurses across Endeavor's system push to unionize. Nurses at Evanston, Skokie, Glenbrook and Highland Park hospitals have been organizing under Teamsters Local 743, the Sun-Times reported. Separately, nurses at Edward Hospital in Naperville filed a petition to hold a union election.

Teamsters Local 743 has also filed charges with the National Labor Relations Board (NLRB), alleging two nurses were fired from Evanston Hospital earlier this year because of union activities, the Tribune reported. Endeavor did not comment directly on the alleged firings.

Gallagher said nurses are "vital to our mission" and that Endeavor has been actively listening to and meeting with its nurses, according to the Sun-Times. Lateef said the merger would provide more opportunities for nurses.