Trinity Health will be buying out CommonSpirit Health’s ownership stake in Iowa-based MercyOne, a regional health system the Catholic health giants had been jointly operating since its founding in 1998, according to a Tuesday afternoon announcement.
The organizations expect to finalize the transaction sometime this summer and said the transition will be “seamless” for the system’s 3.3 million annual patients. Financial terms of the deal were not disclosed.
"We strongly believe this transition to become a full member of the Trinity Health family will result in a stronger, more cohesive health system better able to offer a convenient and personalized circle of care for all we serve," Bob Ritz, president and CEO of MercyOne, said in a statement. "We are delighted to have the agreement in place as we plan for the future of our mission. We are grateful to CommonSpirit for more than 20 years of partnership."
West Des Moines, Iowa-based MercyOne is comprised of 16 medical centers, 27 affiliate organizations and over 420 other care sites, according to the system. It employs more than 20,000 people, including about 2,000 doctors and providers, and generates more than $3 billion in combined revenue.
Trinity Health and CommonSpirit Health said the decision to end their 50-50 split came “after months of analysis and due diligence” that “determined a sole parent is the best path forward for MercyOne and the communities it serves.”
Joining Trinity Health outright will allow the system to follow a single operational strategy and offer a single set of system services, they said. For instance, MercyOne will be able to transition onto Trinity Health’s electronic health record platform so that patients can more easily manage their care across MercyOne’s various service lines or locations.
"True to our shared Catholic mission, our goal is to provide high-quality, compassionate care with the best patient/member experience possible. We will accomplish that goal through a holistic approach, with a range of health services and technologies that are fully connected and coordinated," Mike Slubowski, president and CEO of Trinity Health, said in a statement. "This agreement creates a fully integrated MercyOne to care for more people in a unified way."
Livonia, Michigan-based Trinity Health boasts 88 hospitals and other care locations spread across 25 states. Its 115,000 employees and nearly 26,000 physicians and clinicians drive an annual operating revenue of $20.2 billion.
CommonSpirit Health is the larger of the two faith-based systems with 140 hospitals, over 150,000 employees and revenues of $33.3 billion in 2021. It was formed in 2019 through the merger of Dignity Health and Catholic Health Initiatives, the latter of which had co-founded MercyOne alongside Trinity Health.