MercyOne by Trinity Health and Genesis Health System consider merger

MercyOne, part of Trinity Health, is exploring a merger with Genesis Health System.

On Wednesday, the nonprofit systems signed a letter of intent to develop a strategic partnership, the organization said in a press release. Genesis Health System, a six-hospital system based in Davenport, Iowa, said in December it was looking for a partner to expand services and hire a workforce.

Genesis courted over 30 healthcare systems, eventually choosing MercyOne, a 16-hospital system based in West Des Moines, Iowa. Trinity, an 88-hospital system based in Livonia, Michigan, completed the acquisition of MercyOne earlier this month after taking the remaining shares of its joint venture agreement with CommonSpirit Health.

“Throughout our partnership research, we have sought to select a partner who is willing to make a significant investment in Genesis that will enhance our ability to grow, prosper, and provide more effective comprehensive care in our region,” Doug Cropper, President and CEO, Genesis Health System. , the message says.

Operations will not be affected in any of the healthcare systems in the due diligence process, the systems said. news release. In January, Genesis Health System and MercyOne teamed up to improve community health and risk-based contracting.

Genesis Health System reported an operating profit of $6.5 million on revenue of $706.7 million in 2021 compared to an operating loss of $11.8 million on revenue of $648.8 million US dollars in 2020. Over these two years, the company has received more than $31 million in grants to fight COVID-19.

Trinity reported an operating profit of $657.6M on operating revenue of $20.16B in 2021 compared to an operating loss of $344.7M on an operating profit of $18.83 billion US dollars in 2020.