Trinity Health’s MercyOne and Genesis Health System are expected to close a merger next week, according to a source familiar with the transaction.
MercyOne, a West Des Moines, Iowa-based health system that operates 18 hospitals, is owned by Trinity, an 88-hospital system headquartered in Livonia, Michigan. In September, Davenport, Iowa-based Genesis, when runs five hospitals, chose MercyOne as a “strategic partner” to expand services and boost workforce recruitment.
The deal is expected to close on Tuesday, the source familiar with the transaction said. MercyOne and Genesis declined to comment.
The offices of Iowa Attorney General Brenna Bird (R) and Illinois Attorney General Kwame Raoul (D) would not say whether they have cleared the deal. Illinois has jurisdiction because Genesis Health System operates facilities there. A Federal Trade Commission spokesperson said the agency does not comment on pending transactions or on whether it is investigating any proposed mergers and acquisitions.
Trinity recorded a $206.3 million operating loss on $19.93 billion of operating revenue in 2022 as labor expenses grew more than 8% and operating revenue slightly declined. The health system attributed some of the loss to one-time charges related to restructuring and asset impairments. Trinity reported a $657.6 million operating income on $20.16 billion of operating revenue in 2021.
The heath system completed its acquisition of MercyOne in April after it bought the remaining shares of its joint operating agreement with Chicago-based CommonSpirit Health. Trinity created MercyOne in 1998 with Catholic Health Initiatives, which merged with Dignity Health in 2019 to form CommonSpirit.
Genesis recorded a $34 million operating loss on $721.6 million of revenue in 2022. It reported a $6.5 million operating income on $706.7 million of revenue in 2021.