Mercy Memorial Hospital System signs LOI to join Promedica

Mercy Memorial Hospital System signed a letter of intent to join ProMedica, a not-for-profit, multi-hospital system based in Toledo, Ohio. Mercy Memorial Hospital System's board of trustees made the decision after a comprehensive strategic assessment process. Mercy Memorial Hospital System and ProMedica will now begin an exclusive due diligence period to determine the details of each system's commitment. This may take several months to complete.

"The Mercy Memorial Hospital System Board of Trustees has submitted a letter of intent to join ProMedica. This occurred as a result of a thorough and extensive review process. Our community should know that the trustees unanimously determined that ProMedica best met the board's objectives to expand services and also to increase access to high quality healthcare in the Monroe region," said Donald Spencer, Ed.D., Mercy Memorial Hospital System board chairman. "ProMedica and Mercy Memorial Hospital System have a high level of cultural alignment and a focus on strengthening health care in our local communities."

"Our two organizations have much in common as we work toward the greater good for residents of our region. Both ProMedica and Mercy Memorial Hospital System have a strong, patient-centered approach to health care and mission-driven cultures. Together, we will be able to enhance our shared vision and primary goal of always serving the needs of the community," said ProMedica President and Chief Executive Officer Randy Oostra. "We are very pleased by this vote of confidence from the leadership of Mercy Memorial Hospital System and are excited to work together."

Mercy Memorial Hospital System announced last November that it had engaged Juniper Advisory to assist the board of trustees to conduct a strategic assessment for long-range planning. The new demands resulting from healthcare reform prompted Mercy Memorial Hospital System to conduct the strategic assessment process with the assistance of a nationally-respected advisory firm.

Mercy Memorial Hospital System President and Chief Executive Officer Annette S. Phillips stated, "Over the past six years, Mercy Memorial Hospital System created a strong financial position and reached top decile performance in quality and safety. Our goal is to continue the expansion of services in the Monroe communities. We are very pleased to enter into this new relationship with a system that has a proven record of collaboration, a focus on the community and high value for local governance."

"Put in the broader context of healthcare reform - both in the near term and for generations to come - it is imperative that organizations such as ours seek to achieve more efficient clinical integration as we expand access to care," said Stephen H. Staelin, chairperson of the ProMedica Board of Trustees. "In addition, Mercy Memorial Hospital System and ProMedica will help facilitate collaborative endeavors to better address critical health and social needs throughout the community. The foundation for this new relationship is collaboration, community and caring."

The systems will now enter into an exclusive negotiating period where the proposed transaction will be refined in greater detail. After the due diligence period, and if both systems agree to proceed, a definitive agreement will be signed. The transaction will close a few months afterward and at that time, Mercy Memorial Hospital System will become a member of ProMedica. The complete transition will then take approximately another 24 months.

Mercy Memorial Hospital System