Three-hospital Excela Health said it will purchase 149-bed Mercy Jeannette (Pa.) Hospital from Catholic Health East and the Sisters of Charity of Seton Hill for $16 million.
The parties have signed an asset purchase agreement, taking the first step in an approximately six-month approval process, officials said. As part of the agreement, Mercy Jeannette will become a campus of Excela Health Westmoreland Hospital in Greensburg and be renamed Excela Health Westmoreland Hospital at Jeannette. Excela has also agreed to invest approximately $10 million in capital over the next five years.
The deal was driven by the need for a new strategic partner and direction for the hospital, which became a subsidiary of Pittsburgh Mercy Health System and a member of Catholic Health East in 2003. Pittsburgh Mercy Health System is now awaiting Vatican approval to merge with the University of Pittsburgh Medical Center.
Officials said that since its inception in 2004, Excela Health has stabilized three community hospitalsWestmoreland, Latrobe and Frick under one multihospital health system. Mercy Jeannette is projected to lose $6.5 million on operations in 2007, and can no longer fund capital requirements and operational needs, they said. -- by Cinda Becker
What do you think? Post a comment on this article and share your opinion with other readers. Submit your letter to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.