St. Mary Mercy Hospital in Livonia, Mich., will merge its books and governance into St. Joseph Mercy Health System, a three-hospital system based in Ann Arbor, Mich.
Both already are owned by Trinity Health, which is based in Novi, Mich., and owns and manages 43 hospitals in seven states.
This isnt a traditional asset merger or what we have seen in other markets, said Steve Paulus, vice president of planning and business development for St. Joseph Mercy. It provides our respective organizations with the opportunity to support our communities through collaboration rather than through competition.
Paulus said the enlarged system, which will keep the St. Joseph Mercy name, will have a single operating budget, and its governance will be reconstituted to include board members from 243-bed St. Mary Mercy. The executive team of each will remain intact with Garry Faja as president and chief executive officer of the system and David Spivey as president and CEO of St. Mary Mercy.
Paulus noted that the market the systems hospitals served faced increasing competition from Detroits big players. This year, Henry Ford Health System and St. John Health System plan to open new hospitals in suburbs about 15 miles from St. Mary Mercy. -- by Gregg Blesch