Munson Set To Acquire Mercy Hospitals

Barring any unforeseen delays, Munson Healthcare will close on the purchase of Mercy Hospital Cadillac and Mercy Hospital Grayling on February 1, 2015.

When Munson Healthcare first announced news of the planned purchase in May, president and CEO Ed Ness described it as “the next practical step” in their partnership and ensures Munson can continue to meet the health care needs of Cadillac and Grayling residents.

Owned by CHE Trinity Health, both hospitals have been managed by Munson Healthcare for more than 11 years and affiliated for nearly 16 years. They will join Munson Medical Center and Paul Oliver Memorial Hospital as owned affiliates.

The “restructuring of health care is forcing hospitals to look for opportunities that involve collaboration and efficiencies,” according to Munson Healthcare leaders. The purchase also eliminates some of the “administrative complexity” caused by being owned by one system and managed by another.

Also included in the purchase is long-term care facility Mercy Manor in Grayling and the affiliated Mercy Home Care and Hospice services in Cadillac, Grayling and Houghton Lake.

Employees of Mercy Hospital Cadillac, Mercy Hospital Grayling, and Mercy Manor will remain employees of CHE Trinity Health until July 1, 2015 and will work for Munson Healthcare through a contract between Munson Healthcare and CHE Trinity Health. Mercy Home Care & Hospice employees will make the transition to Munson on Feb. 1.

Munson Healthcare also recently announced the health facilities’ new names: Mercy Home Care & Hospice Northern Michigan will become Munson Home Health, Munson Healthcare (blended together into a single, integrated, regional home health organization); Mercy Hospital Cadillac will become Munson Healthcare, Cadillac Hospital; Mercy Hospital Grayling will become Munson Healthcare, Grayling Hospital.

The new name for Mercy Manor remains under discussion with Grayling hospital leadership and the facility’s medical director, confirmed Munson spokesperson Dale Killingbeck. The name change will be announced in the near future.