Tyler Memorial Hospital, Tunkhannock, Pa., and the Northeast region of Mercy Health Partners, Scranton, Pa., said that they have agreed on a memorandum of understanding in order to investigate a deal between them. The not-for-profits expect to spend 90 to 120 days in due diligence before deciding whether to collaborate and in what form. Mercy, which is part of Cincinnati-based Catholic Healthcare Partners, operates 230-bed Mercy Hospital of Scranton and 68-bed Mercy Special Care Hospital, Nanticoke, Pa. Scranton is about 25 miles away from 58-bed Tyler Memorial.
Denise Gieski, president and CEO of Tyler Memorial, said in a news release that Mercy appears to be the best fit for Tyler and should enable the hospital to continue to serve its local patients. Both sides said in the joint release that a combination would provide financial and clinical gains. The difficulties of maintaining an independent hospital is also a driver of the effort, the parties said.
Another deal is pending in nearby Wilkes-Barre, Pa., where Community Health Systems, Franklin, Tenn., has hammered out a definitive agreement to acquire two-hospital Wyoming Valley Health Care System. Terms have not been disclosed.