With final Vatican approval imminent, three New York Roman Catholic providers are close to sealing a merger deal that would create the city's largest fully integrated Catholic healthcare system.
If the deal proceeds as expected, the newly formed seven-hospital St. Vincents Catholic Medical Centers of New York would control 2,600 acute-care beds and roughly $1.2 billion of net patient revenues. It would represent New York's latest mega-merger since last summer's combination of Mount Sinai Medical Center and New York University.
The new organization would result from the full-asset merger of Saint Vincents Hospital and Medical Center, two-hospital Sisters of Charity Healthcare System on Staten Island and Catholic Medical Centers (formerly Catholic Medical Center of Brooklyn and Queens), which operates four hospital divisions.
In March, the triumvirate said merger discussions had broken, but the news was worded in a way that left the door open to a resumption of those talks (March 15, p. 34). Indeed, sources said issues of control among the various Catholic orders stymied progress and required a cooling-off period.
But now the deal is back on track, said William McGuire, Catholic Medical Centers' president and chief executive officer.
At deadline, the merger had not been officially announced. But as McGuire described it, the new organization will be governed by a single board and run by a unified management team. A "sponsors council" representing the Sisters of Charity and the Archdiocese of Brooklyn is launching a nationwide search for a CEO. The council will serve as the governing board on an interim basis until a new board is appointed.
The deal also requires state and federal antitrust clearance and approval by the U.S. Department of Housing and Urban Development, which backs much of the three organizations' outstanding debt, totaling about $300 million. McGuire said he anticipates the merged organization will seek to refinance that debt once the deal is completed.