September 30, 2022

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Medicare Part B, Part D and Medicare Advantage Premiums Decline in 2023
NAHU Submits Comments to NAIC on Proposed Changes to Unfair Trade Practices Model Act
Mergers and Acquisitions: MercyOne and Genesis Make Moves in the Midwest
State Spotlight: Nevada Releases Preliminary Public Option Study, Details Next Steps
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Mergers and Acquisitions: MercyOne and Genesis Make Moves in the Midwest

In a move that will likely impact healthcare consumers in Illinois and Iowa, Trinity Health's MercyOne and Genesis announced that the health systems will be entering a "strategic partnership" with one another.

Earlier this month, Trinity Health officially completed its acquisition of Catholic health system MercyOne. The Des Moines, Iowa-based MercyOne is comprised of 16 medical centers, 27 affiliate organizations and over 420 other care sites, according to the system. The company generated more than $3 billion in combined revenue last year. Trinity Health specifically bought out the entirety of CommonSpirit Health’s ownership stake in MercyOne; CommonSpirit is one of the largest Catholic health systems in the country and previously held a 50-50 stake in MercyOne along with Trinity. 

By obtaining sole ownership of MercyOne, Trinity was able to transition MercyOne into its own system. However, MercyOne retained its name and brand. MercyOne sees 3.3 million patients annually across its more than 400 centers and care sites, generating more than $3 billion in combined annual revenue.

This week, Trinity announced that MercyOne is considering a “strategic partnership” with Genesis Health System, a health network with six medical centers and over 100 locations across eastern Iowa and western Illinois. It is important to note that this partnership stops short of being a merger; Genesis has been looking for a local partner for several months and is most interested in “creating additional opportunities to address market pressures and provide additional scale.”

Genesis President and CEO Doug Cropper noted in the announcement that his system’s search had focused on selecting “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.” 

“MercyOne and Genesis Health System are both mission-driven organizations committed to delivering the highest quality care and best patient experience to all we serve across Iowa,” said Bob Ritz, MercyOne president and CEO. “We look forward to continuing discussions and shaping a framework to enhance access to personalized, convenient health care across Eastern Iowa and Western Illinois.”

According to the companies' joint press release, there will be no operational changes at either healthcare system as a result of the partnership process, which will occur over the course of the next several months.

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