Two Roman Catholic group purchasing organizations plan to merge this summer to create one of the nation's largest alliances, representing more than 170 hospitals and $14 billion in gross annual revenues.
The purchasing group of the Daughters of Charity National Health System, St. Louis, and the Sisters of Charity Health Care Systems, Cincinnati, agreed in principle last month to merge with Cross, a Catholic-sponsored group purchasing alliance based in South Bend, Ind.
When the deal is completed early this summer, the alliance would be called Catholic Materials Management Alliance. A decision hasn't been made on where the alliance will be based or who will be the organization's director, a spokeswoman for the Sisters of Charity said.
Cross is sponsored by three Catholic systems-Franciscan Health System, Aston, Pa., Holy Cross Health System Corp., South Bend, and Alverno Administrative Services, Mishawaka, Ind.
System executives said they expected to reap "significant potential savings" through the additional purchasing power of the alliance. No specific estimate of savings was given.