Trinity Health has completed the acquisition of MercyOne Health, expanding its hospice presence in Iowa. The financial terms of the deal were not disclosed.
Trinity Health signed a definitive agreement with CommonSpirit Health to acquire MercyOne in April. CommonSpirit grew out of a joint operating agreement between Trinity Health and Catholic Health Initiatives.
“With MercyOne now fully part of Trinity Health, we are a stronger and more unified system that will strengthen MercyOne’s ability to serve our patients, colleagues and communities,” said Mike Slubowski, President and CEO of Trinity Health, in a Announcement. “Healthcare providers across the country continue to face unprecedented challenges from the COVID pandemic, but together we are stronger.”
Trinity Health is a large, faith-based, not-for-profit healthcare system headquartered in Michigan that employs approximately 26,000 physicians. The health system provides care in 25 states and operates 88 hospitals, 131 continuous care locations, and 125 emergency care centers nationwide. Its services include home health care, hospice and PACE programs. The healthcare system’s annual operating income is approximately $20.2 billion.
MercyOne will retain its name and brand after the transaction closes. This is part of an integration strategy aimed at maintaining some continuity for current patients and the community, the company said.
“Today’s closing further advances MercyOne’s vision to provide a personalized and highly convenient care experience for Iowans and neighboring communities,” said Bob Ritz, President and CEO of MercyOne, in the announcement. “We are excited to become a full member of the Trinity Health family, which will further advance our goal of being a more connected system of healthcare services.”
Integration activities such as regulatory filings and other legal and financial processes are ongoing
The agreement covers MercyOne’s hospices, infusion and home care facilities.
Founded in 1998, MercyOne’s healthcare system consists of 16 medical centers, 27 affiliated organizations and more than 420 nursing facilities employing 2,000 physicians and nurses serving more than 3.3 million patients annually.
According to Slubowski, Trinity Health has served the Iowa communities for about 25 years.
The country’s healthcare system is on a growth course. Earlier this year, Trinity Health acquired Iowa-based Above & Beyond Home Health Care and Hospice for an undisclosed sum.
Trinity has prioritized transactions in Hawkeye State in response to growing demand for critical illness and hospice care, the company said.
Iowa’s aging population is the primary reason for this increasing need. According to the US Census Bureau, seniors are expected to make up 27% of the state’s total population by 2030, up from the current 17.5%.
Hospice utilization is high in Iowa compared to other states. In 2018, it ranked seventh nationally for hospice use among Medicare deceased at 56.2%, according to the National Hospice and Palliative Care Organization. Utah had the highest rate this year at 60.5%.
Further acquisitions are likely for Trinity.
Trinity Health At Home, the health system’s division of home health and hospice services, plans to move more aggressively this year in a “hyper-competitive” acquisition market, Mark McPherson, its president and CEO, told Hospice News’ sister publication Home Health Care News .
It’s particularly focused on growing its private business and is “seriously looking” at acquiring about a half-dozen of those agencies.