Calling the union 'a combination of equals,' the health system said its talks were completed on an expedited timeline, thanks to early alignment in culture and mission.
Less than seven months after announcing their intent to merge, two Catholic health systems finalized the arrangement Wednesday, forming one of the largest health systems in the country and naming 14 members of the new senior leadership team.
Bon Secours Health System, based in Marriottsville, Maryland, merged with Mercy Health, based in Cincinnati, Ohio, to form what is now Bon Secours Mercy Health, a 43-hospital system based in Cincinnati and operating across seven states.
The organizations, which called their union "a combination of equals," noted in Wednesday's announcement that they were able to finalize the arrangement on an expedited timeline thanks to early alignment of their similar cultures and mission-based commitments to quality care.
The definitive agreement was reached using only internal governance, mission, and legal teams—no outside resources—the organizations said. After the terms of the combination were framed, the organizations hired Deloitte Consulting to help integrate their operations, and that work continues.
The combined entity has been projected to generate nearly $9 billion in annual operating revenues across its more than 1,000 care sites.
The formation of Bon Secours Mercy Health comes amid a flurry of M&A activity among major hospital operators, including large Catholic systems.
Related: Healthcare M&A: Is It Different This Time?
Catholic Health Initiatives and Dignity Health announced their merger plans in December, two months ahead of the announcement from Bon Secours and Mercy Health. Advocate Aurora Health formed earlier this year following a mega-merger between Advocate Health Care and Aurora Health Care.
A possible merger between Ascension and Providence St. Joseph Health would have formed a system bigger than HCA Healthcare, making it the largest hospital operator in the country, but talks about such a deal fell apart earlier this year.
Senior Leadership Team
John M. Starcher Jr., JD, who had been serving as president and CEO of Mercy Health, was named president and CEO of the combined Bon Secours Mercy Health in July. Immediately thereafter, Starcher began working to build the new organization's senior leadership team.
The organizations announced nine senior leaders Wednesday who will report directly to Starcher:
- Chief Operating Officer Brian Smith
- Chief Clinical Officer Wael Haidar, MD
- Chief Financial Officer Debbie Bloomfield
- Chief Strategy Officer David Cannady
- Chief Administrative Officer Mark Nantz
- Chief Enterprise Risk Officer Jeff Oak
- Chief Legal Officer Michael Bezney
- Chief Community Health Officer Sam Ross, MD
- Chief Sponsorship and Mission Officer Sr. Anne Lutz, CBS
The organization noted that the five following leaders will report to Starcher's direct reports:
- Chief Human Resources Officer Joe Gage
- Chief Marketing Officer Sandra Mackey
- Chief Nursing Officer Andrea Mazzoccoli
- Chief Sponsorship and Theology Officer Thom Morris
- Chief Mission Officer Fr. Joseph Cardone
"Each of these leaders brings significant experience and a clear vision for how we can work together to ensure patients remain at the center of everything we do," Starcher said in the statement. "Their leadership and expertise will be key to our success as we continue working to integrate physician, clinical and operational leadership across our growing ministry and transform the way we provide care to the communities we serve."
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The two Catholic systems reached a definitive agreement without using outside resources.
The combined entity has been projected to generate nearly $9 billion in annual operating revenues across its more than 1,000 care sites.