Bon Secours Health System and Mercy Health Announce Intent to Merge

Bon Secours Health System and Mercy Health Announce Intent to Merge: A Common Mission of Bringing Compassion to Health Care and Creating Healthier Communities
Serving communities across 7 states; 43 hospitals with more than 1,000 sites of care providing $640 million annually in Community Benefit

MARRIOTTSVILLE, Md. and CINCINNATI, Ohio - February 21, 2018 - Bon Secours Health System, a Catholic health ministry serving residents across the East Coast, and Mercy Health, a Catholic health ministry serving Ohio and Kentucky, today announced their intent to merge, creating one of the largest health systems in the country spanning seven states in the eastern half of the U.S.

“As consumers grapple with the implications of Health Care 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,” said 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.”

“The mission, vision, values and geographic service areas of Bon Secours and Mercy Health are remarkably well-aligned and highly complementary,” said Richard J. Statuto, President and CEO of Bon Secours Health System. “This merger strengthens 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 health care.”

Together, Mercy Health and Bon Secours rank in the top performing quartile of Catholic health systems for low-cost, high-quality patient care, promoting healthier lives and creating more affordable health care for residents across an expanded footprint. The merger creates the fifth largest Catholic health system in the country, allowing the new entity to leverage economies of scale by integrating resources and teams across the ministries. This merger creates future opportunity to deepen our commitment to existing communities while expanding the health ministry into complementary service areas across the United States. Further alignment of the ministries offers an opportunity within the United States and outside of its borders to bring healing and hope to those most in need.

Stronger Together – Bon Secours and Mercy Health:

• One of the top 20 health systems in the nation and the fifth largest Catholic health system with $8 billion in Net Operating Revenue and $293 million in operating income. This strong operating margin allows us to advance our shared ministry and reinvest in community benefit.

• 57,000 associates and more than 2,100 employed physicians and advanced practice clinicians

• More than 10 million patient encounters across seven states, with 43 hospitals and more than 1,000 care sites

• Robust post-acute care services with more than 50 home health agencies, hospice agencies, and skilled nursing and assisted living facilities

• Almost $2 million per day in community benefit, serving the most vulnerable in our service areas

"We are guided by our shared faith and commitment to partner with communities to create a more humane world, build social justice for all, especially the poor and dying," noted Sister Patricia A. Eck, C.B.S., chairperson of Bon Secours Ministries. "This merger ensures a strong future for our shared health ministry as we work to bring health and wholeness to those we so humbly serve."

"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," noted Katherine Vestal, chairperson of Mercy Health Board of Trustees. "The synergistic alignment of our mission and values make this merger a natural fit."

In the coming months, both parties will work together to finalize a definitive merger agreement, obtain applicable approvals and complete plans to merge. While there is no specific date outlined, executives at both Mercy Health and Bon Secours expect to complete this merger by the end of the calendar year.

About Mercy Health

Mercy Health is the largest health system in Ohio and among the top five employers in the state, with more than 33,500 employees serving communities throughout Ohio and in Kentucky. Mercy Health provided care for patients more than 6.8 million times in 2017. The system includes assets of $6.8 billion and nearly 500 care facilities including 23 hospitals and 26 post-acute care facilities including senior living communities, hospice programs and home health agencies. Its clinically integrated network, coordinates more effective and efficient care for more than 200,000 patients, saving money for taxpayers through the Medicare Shared Savings Program. In keeping with its mission to extend the healing ministry of Jesus by improving the health of its communities, Mercy Health provides more than $1 million per day in community benefit services. For more information, visit www.mercy.com or connect with Mercy Health on Facebook, LinkedIn, Google+, Instagram and Twitter (@mercy_health).

About Bon Secours Health System

Bon Secours Health System is a not-for-profit Catholic health system sponsored by Bon Secours Ministries and founded by the Sisters of Bon Secours. With operations in Maryland, Virginia, South Carolina, Kentucky, Florida and New York, Bon Secours owns, manages, or joint ventures 20 hospitals and 27 post-acute care facilities or agencies including skilled nursing facilities, home care and hospice services, and assisted living facilities. Consistent with its commitment to alleviate human suffering, Bon Secours has developed more than 800 affordable housing units for low income families. Bon Secours has more than 24,000 employees and has been recognized as a Gallup Great Workplace for six consecutive years. The Mission of Bon Secours is to bring compassion to health care and to be Good Help to Those in Need, especially those who are poor and dying. For more information, visit www.BonSecours.com or connect with Bon Secours on Facebook, LinkedIn, Google+ and Twitter (@BonSecours).