Catholic Health Initiatives and Mercy Health Services have consummated a deal to consolidate their Iowa operations under one operating company.
Called Mercy Health Network, it owns seven acute-care hospitals in the state and has affiliations or management contracts with more than 20 others (Feb. 2, p. 24).
The systems completed their deal July 1.
The new network is expected to have annual revenues of more than $700 million, with hospitals spanning the state. It will be among the largest networks in Iowa.
The systems didn't file for antitrust clearance, because the deal involved no overlapping markets, said Stephen Shivinsky, a spokesman for Farmington Hills, Mich.-based Mercy.
He said the network will have its corporate offices in West Des Moines, a suburb of Des Moines.
A chief executive officer for the network hasn't been named yet, said Joyce Ross, a spokeswoman for Denver-based CHI.
When the CHI-Mercy deal was announced in January, the state hospital association president said it was a way for providers to ready themselves for the onslaught of managed care. The majority of the Iowa market has been discounted fee-for-service.
Nationally, CHI owns 70 hospitals, and Mercy owns or is affiliated with 38.