Saginaw (Mich.) General Hospital and St. Luke's Hospital in Saginaw have entered exclusive merger negotiations, which are expected to be completed by July 31.
The hospitals, with combined assets of about $231 million, control about two-thirds of general acute-care admissions in Saginaw County, Mich.
Saginaw also is home to 268-bed St. Mary's Medical Center, which is affiliated with St. Louis-based Daughters of Charity Health System, and a Department of Veterans Affairs medical center.
Saginaw General picked St. Luke's from 10 suitors. Other finalists were St. Mary's and King of Prussia, Pa.-based Universal Health Services.
Saginaw General, with 337 beds, has projected net income of $2.8 million and revenues of $180 million for the fiscal year ending June 30. St. Luke's, a Lutheran-affiliated hospital with 352 beds, projects net income of $9 million and revenues of $306 million for the same period.