Mount Carmel parent Trinity Health announces intent to merge with Catholic Health East|
by Carrie Ghose, Staff reporter
October 17, 2012
Trinity Health, the parent company of Columbus-based Mount Carmel Health System, said Wednesday that its board had signed a non-binding letter of intent to merge with Catholic Health East, creating a 21-state Roman Catholic health-care system.
Trinity CEO Joseph Swedish would become CEO of the combined organization and Catholic Health CEO Judith Persichilli would be named executive vice president. The two nonprofits anticipate finalizing the merger in the spring.
Mount Carmel CEO Claus von Zychlin said in a statement he was excited about the potential union: “Mount Carmel knows the benefits to our patients and our community of sharing services and expert clinical knowledge across a large system.”
Novi, Mich.-based Trinity encompasses 20 organizations in 10 states. In the year ended June 30 it had operating income of $207 million on $8.9 billion in revenue, according to its audit. Catholic Health East, based in Newtown Square, Pa., has 21 organizations in 11 East Coast states. In calendar 2011 it had operating income of $17 million on annual revenue of $4.3 billion, according to its audit.
Trinity does not break out operating results for individual units, but four-hospital Mount Carmel is one of its largest single entities with $1.4 billion in revenue in fiscal 2011.
The combined nonprofit would have 82 hospitals, 89 nursing homes and affordable housing communities, and home health and hospice programs that do 2.8 million patient visits a year.
Under federal health-care reform, health systems are working to better integrate care between in-home care, physicians’ offices and hospitals.
“This consolidation advances the vision of congregations of sisters that founded these health-care ministries, addresses the changing health-care environment and takes a bold next step for Catholic health care,” Sister Mary Mollison, Trinity board chairwoman, said in a news release.
Dennis Fitzpatrick, chairman of Catholic Health East, said in the release that more effective use of resources and shared expertise will give the combined organization “greater ability to influence and transform health care at the national level.”
Carrie Ghose covers health care and medicine, higher education, technology and business services for Business First.