Good Samaritan Health System has signed an agreement to merge with Helix Health System. Both are based in Baltimore.
The merger would create an entity with three hospitals, some 1,117 licensed beds, annual net operating revenues of $420 million and total assets of almost $500 million (See chart). There are 15 acute-care hospitals in Baltimore.
The deal is expected to be completed by July 1, pending a final board review and antitrust approvals.
Under the agreement, Helix will be the parent organization for the merger partners. James Oakey, 59, Good Samaritan's president and chief executive officer, will replace Michael Merson, 49, as Helix's president and CEO.
Mr. Merson, who was appointed Helix's co-vice chairman in 1993 in preparation for the system's decision to search for a new leader, will remain on the board and will be in charge of strategic planning and system building, said Sharon M. Drevitch, a Helix spokeswoman.
In late 1992, the Internal Revenue Service began an investigation into Helix and the use of its tax-exempt revenues (Dec. 21/28, 1992, p. 18). IRS auditors are continuing to study Helix, but they've been gathering information on what appears to be a part-time basis, Ms. Drevitch said.
The IRS has been auditing about 20 not-for-profit organizations during the past three years, looking at executive and physician compensation, payment of taxes on unrelated business income and other areas.
Good Samaritan operates a hospital licensed for 287 beds, a 137-bed nursing home, a 94-unit elderly housing complex and two medical office buildings. The agreement with Helix requires that Good Samaritan be operated under ethical and moral guidelines of the Roman Catholic faith.
Helix, which was formed in 1987 through the merger of Franklin Square Hospital Center and Union Memorial Hospital, operates 830 licensed acute-care beds, a 102-bed nursing home and several outpatient services.