APPLETON, Wis.-St. Elizabeth Hospital in Appleton and Mercy Medical Center in Oshkosh said they would merge their facilities but would retain separate names and presidents. If the deal is completed, the combined organization would employ 3,100 people and generate annual revenues of $180 million. The new organization would be owned 50% each by the Roman Catholic orders that own the facilities. St. Elizabeth is owned by Wheaton (Ill.) Franciscan Services and Mercy by Sisters of the Sorrowful Mother Ministry Corp., Tulsa, Okla. Joseph Ross, Mercy's president, said the hospitals needed to cover a larger geographic area to compete for contracts with large employers and groups of employers. "We think there is a fundamental restructuring occurring in the marketplace, changing the patterns of delivery and the patterns of purchasing," he said.
EAST ST. LOUIS, Ill.-St. Mary's Hospital broke ground last week on a $3.1 million medical office center designed to help 25
tackle the area's alarming primary-care shortage. The two-story building will have 20 physician offices and be the new home for the Catherine Kasper Center, a not-for-profit clinic now located in a renovated East St. Louis grocery store. It serves 9,000 patients a year. "That clinic is in an area so unsafe it's been difficult to convince people to work there after dark," said Bernie Bolt, St. Mary's chief financial officer. The new 30,000 square-foot office center will be adjacent to 135-bed St. Mary's and be connected by an enclosed bridge. Hospital executives said the center will play an important role in recruiting and retaining primary-care physicians. "There are only seven primary-care physicians serving an area of 70,000 people," said St. Mary's chief executive officer, Charles Windsor. "One of our primary missions is the recruitment of new medical providers to serve this community." Construction of the new medical office center is scheduled to be completed by early July.
DETROIT-The trustee representing 288-bed North Detroit General Hospital said last week that he expected the facility to reopen later this year as an acute-care hospital. The financially strapped North Detroit General closed in May 1993, but an option agreement has been signed to sell the hospital to unspecified new owners, said the trustee representing the creditors, Michael Traison. The hospital filed for protection from creditors under Chapter 11 of the federal bankruptcy act in July 1991. Mr. Traison declined to disclose purchaser's identity to avoid jeopardizing the deal. He said he expected to announce the purchaser and the hospital's sale price later this month.