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Mercy Health begins merger process

Would become 5th-largest Catholic health group

WARREN — Mercy Health, which operates nearly two dozen medical facilities in Trumbull and Mahoning counties, including St. Joseph Warren Hospital, has begun the process of merging with Maryland-based Bon Secours Health System.

The merger would create a health care giant that would serve seven states and become the fifth largest Catholic health system in the U.S. with 43 hospitals, $8 billion in net operating revenue and $293 million in operating income.

“Today was the first step, an announcement of (our) intent to merge,” said Maureen Richmond, senior director of integrated communications with Mercy Health, of Wednesday’s joint announcement.

“We expect the agreement to be finalized by the end of the year, pending regulatory approvals and we also get approval from the Vatican.”

The merger is not expected to affect local facilities, which also include St. Elizabeth Boardman Hospital, St. Elizabeth Youngstown Hospital and several urgent care, medical and other health care centers in the two counties.

“This is a merger of equals. It is a union of two highly complimentary health systems … both organizations are very financially sound as well as sound in their community beliefs,” Richmond said.

Combined, the two provide $640 million back into the community through various programs and in care to people who cannot afford it. Mercy Health alone provides a community benefit of about $1 million per day.

“That commitment is unwavering,” Richmond said.

Said John M. Starcher Jr., Mercy Health president and CEO, “As consumers grapple with the implications of Health Care Reform in a dynamic marketplace, Mercy Health and Bon Secours share a vision to improve the health of the communities we serve as the low-cost, high-value provider. Working together, our strong faith-based heritage fuels our mutual focus to provide efficient and effective health care for each patient who comes through our doors.”

Mercy Health — one of the largest health systems in Ohio and among the state’s top five employers — operates 23 hospitals and 26 post-acute care facilities and has about 33,500 employees in Ohio and in Kentucky. It provided care to patients more than 6.8 million times in 2017, according to a news release.

The nonprofit Catholic system Bon Secours owns, manages or operates 20 hospitals and 27 post-acute care facilities in six states along the East Coast. It has more than 24,000 employees, the release states.

Together, the release states, the health systems will:

• Become one of the top 20 health systems in the U.S.;

• Have more than 57,000 associates and more than 2,100 employed physicians and advanced practice clinicians;

• Have more than 50 home health and hospice agencies and skilled nursing and assisted living facilities;

• Provide almost $2 million per day in community benefit.

“The synergistic alignment of our mission and values make this merger a natural fit,” said Katherine Vestal, chairperson of the Mercy Health board of trustees.

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