Mount Carmel parent weighs consolidation|
Trinity Health, Catholic Health East have complementary strengths
By Ben Sutherly
October 18, 2012
Mount Carmel Health System’s parent organization, Trinity Health, is pursuing a consolidation with Catholic Health East, the health system with the largest number of assisted-living residents in the nation.
The target date for the consolidation is spring 2013. The consolidation would create the nation’s second-largest Catholic health system in terms of beds, based on 2011 data from Modern Healthcare. The combined organization’s revenue would be $13.3 billion, with a total of 87,000 employees and 4,100 employed physicians.
Mount Carmel said it does not expect any immediate local impact if the consolidation happens.
The two organizations are “like-minded” in terms of their values and are complementary in several other ways, said Trinity spokesman Bret Gallaway. CHE has a heavy presence along the East Coast, while Trinity’s geographic reach is primarily in the Midwest and West.And while Trinity has the greater number of acute hospitals
(47 versus 35 at CHE), CHE has far more home-health visits (nearly 2?million compared with Trinity’s 750,000).State or federal regulatory approval might be needed before the deal can be finalized, Gallaway said. Determining which approvals might be needed is part of a due-diligence process that will take place over the next several months, he said.
Trinity and CHE said the consolidation would help the two organizations manage the overall health of the populations they serve.
Joseph R. Swedish, Trinity’s president and CEO, would lead the anticipated new organization, while Judith M. Persichilli, president and CEO of CHE, would become the new entity’s executive vice president. The two would retain their current titles, roles and responsibilities with their existing organizations.
In a prepared statement, Claus von Zychlin, Mount Carmel’s president and CEO, said: “I am very excited about the many benefits of coming together with CHE and its strong Catholic health-care ministry.“Mount Carmel knows the benefits to our patients and our community of sharing services and expert clinical knowledge across a large system. By coming together, our respective strengths and capabilities will grow significantly and we will all be able to leverage one another’s areas of expertise to benefit our patients and communities.”
Mount Carmel had revenue of $1.5 billion in its 2011-12 fiscal year.
It has about 8,000 employees.