Chicago partner Fatema Zanzi and associate Chris Anderson were quoted in an article in The Day titled, “Hospital affiliation, library loans, and indignation.” The article discussed the pending affiliation between the Yale New Haven Health System and L+M Healthcare.
The affiliation was defined as a sole member substitution, an arrangement that is neither an acquisition nor a merger. The term was traced to a paper written by Fatema and Chris and defined as follows:
“The parent will reserve certain rights over the subsidiary as specified in the governing documents of the subsidiary. In a membership substitution model … the target hospital becomes a subsidiary of the health system parent. Both entities will remain separate legal entities with separate governing boards.”
The article describes the definition as, “a term of art reserved for a growing number of hospital affiliations.”