Sisters of Charity Health System will wholly own 182-bed St. Vincent Charity Hospital in Cleveland and 345-bed Mercy Medical Center in Canton, Ohio, under a letter of intent to assume the 50% shares in the facilities held by University Hospitals. The two Cleveland systems will continue to share ownership of 172-bed St. John West Shore Hospital in Cleveland, and University Hospitals would assume control of its operations through a new management contract, according to a news release announcing the nonbinding agreement. The hospital would retain its Catholic mission and identity.
The agreement also calls for the systems to make equal investments totaling $100 million in St. John West Shore, as well as a joint contribution of $30 million to establish a fundraising foundation at St. Vincent Charity. Sister Judith Ann Karam, Sisters of Charity Health System's president and chief executive officer, cited the economic climate and technology demands as motivating the move. "This new agreement will enable the Sisters of Charity Health System to more fully integrate our four wholly owned hospitals," Karam said in the release, referring to the Ohio hospitals and 258-bed Sisters of Charity Providence Hospitals, which has two campuses in Columbia, S.C.