MercyOne, which is part of Trinity Health, is exploring a merger with Genesis Health System.
The not-for-profit systems signed a letter of intent Wednesday to develop a strategic partnership, the organizations said in a news release. Genesis Health System, a six-hospital system based in Davenport, Iowa, said in December it was seeking a partner to expand services and boost workforce recruitment.
Genesis courted more than 30 health systems, ultimately choosing MercyOne, a 16-hospital system based in West Des Moines, Iowa. Trinity, the 88-hospital system based in Livonia, Michigan, completed its acquisition of MercyOne earlier this month, after it acquired the remaining shares of its joint-operating agreement with CommonSpirit Health.
“Throughout our partnership exploration, our commitment was to select a partner willing to make significant investments in Genesis that will enhance our ability to grow, thrive and deliver more seamless integrated care in our region,” Doug Cropper, president and CEO of Genesis Health System, said in the release.
Operations will not be affected at either health system during the due diligence process, according to the release. In January, Genesis Health System and MercyOne partnered to improve population health and risk-based contracting efforts.
Genesis Health System reported $6.5 million in operating income on revenue of $706.7 million in 2021, compared with an operating loss of $11.8 million on revenue of $648.8 million in 2020. It received more than $31 million in COVID-19 relief grants during those two years.
Trinity reported $657.6 million in operating income on operating revenue of $20.16 billion in 2021, compared with a $344.7 million operating loss on $18.83 billion of operating income in 2020. It received more than $1.2 billion in COVID-19 relief grants in 2020 and 2021.
