St. Vincent Medical Center in Toledo will form a partnership with four northwest Ohio hospitals owned by the Cincinnati-based Mercy Health System.
Mercy and St. Vincent's parent, Lexington, Mass.-based Covenant Health Systems, have signed a letter of intent.
The agreement proposes forming a corporation under Mercy to coordinate activities of 448-bed St. Vincent; 265-bed St. Charles Hospital, Oregon; 189-bed Mercy Hospital, Toledo; 95-bed Mercy Hospital, Tiffin; and 30-bed Mercy Hospital-Willard (Ohio).
Its board will have equal representation from the Sisters of Charity of Montreal Grey Nuns, which sponsor Covenant, and the Sisters of Mercy.
Further, the Grey Nuns would co-sponsor Mercy Health System, and St. Vincent would join the Mercy system.
Mercy has more than 60 health-related corporations in five states, including hospitals, long-term-care facilities, elderly housing, home health, hospices and outreach.
Covenant Health Systems includes hospitals, long-term care, residential communities and other allied health services in four states.
Mercy reported net patient revenues in 1994 of $1.1 billion and net operating income of $34.4 million.
Covenant reported net patient revenues of $407 million and net operating income of $17.9 million.