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Bon Secours, Mercy Health Engaging in Hospital Merger Talks

A hospital merger is slated for the end of the year between Bon Secours Health System in Maryland and Mercy Health in Ohio, the health systems announced.

Hospital merger, Bon Secours Health System, and Mercy Health

Source: Thinkstock

By Jacqueline LaPointe

- Maryland-based Bon Secours Health System recently announced its intent to engage in a hospital merger deal with Mercy Health in Ohio and Kentucky.

The Catholic health systems are currently engaged in merger talks, with a final deal expected to come by the end of the year.

“We are excited about the prospect of two like-minded health systems joining forces to advance our mutual health ministry and improve the health of our communities,” stated Katherine Vestal, Mercy Health Board of Trustees Chairperson. “The synergistic alignment of our mission and values make this merger a natural fit.”

Mercy Health is already the largest health system in Ohio, boasting over 33,500 employees working at nearly 500 care sites, including 23 hospitals, 32 physician groups, and 26 post-acute care facilities, according to Definitive Healthcare data.

The Ohio-based health system would combine with Bon Secours Health System, which shares the market with Mercy Health in Kentucky. However, the Maryland-based system also spans five other states: Maryland, Virginia, South Carolina, Florida and New York.

Bon Secours Health System reports over $3.5 billion in net patient revenue stemming from its 20 hospitals, 62 physician groups, and dozens of other care sites, Definitive Health data showed. The health system also includes more than 24,000 employees.

The two health systems combined would create the fifth largest Catholic health systems in the country, as well as one of the largest hospital chains.

The merged system would include 43 hospitals and over 1,000 sites of care across communities in seven states in the eastern half of the nation.

According to the press release, the hospital merger deal would also include more than 50 home health agencies, hospice sites, skilled nursing facilities, and assisted living facilities.

In total, the combined health system would provide over 10 million patient encounters, drawing $8 billion in net operating revenue and $293 million in operating income.

The health systems intend for the strong operating margin of the merged system to help the organizations reinvest in community benefits. Bon Secours Health System and Mercy Health anticipate the combined hospital chain to deliver $2 million in community benefit a day.

“As consumers grapple with the implications of healthcare 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,” stated John M. Starcher, Jr, Mercy Health President and CEO. “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.”

Bon Secours Health System President and CEO Richard J. Statuto explained that the hospital merger deal would also advance the “our shared commitment to improve population health, eliminate health disparities, build strength to address social determinants of health, and invest heavily in innovating our approaches to healthcare.”

The health systems expect to finalize a definitive hospital merger agreement in the next few months. In the meantime, the organizations plan to hammer out the details of the deal and new health system, such as where it will be centered.

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