SoutheastHEALTH signs agreement to join St. Louis-based Mercy

CAPE GIRARDEAU, Mo. (KBSI) – SoutheastHEALTH announced Tuesday that it signed a definitive agreement with St. Louis-based Mercy to become a member of Mercy’s multi-hospital system.

The two organizations have been finalizing details of an affiliation since they announced in January they signed a letter of intent.

With the affiliation with Mercy, SoutheastHEALTH will become part of one of the largest health care systems in the country.

The transaction is subject to customary closing conditions, including regulatory and other required third-party approvals. After receiving the approvals, both organizations will be prepared to engage in a transition planning process. That process includes Mercy hosting community roundtable listening tours. They typically include business and civic leaders, physicians, elected officials and other community representatives, who are invited to meet with hospital leaders to help determine next steps in the community master planning process.

“Mercy joining Cape Girardeau and the greater Southeast Missouri region is a very real example of one of the ways we live the legacy of the Sisters of Mercy,” said Steve Mackin, Mercy president and CEO. “The Sisters would answer the call of a community, and we are honored to have SoutheastHEALTH invite us to join them in serving Southeast Missouri and bring our resources to the people of this region. Together, we will positively impact the community.”

“This is an exciting day for the community, for patients and for co-workers,” said Ken Bateman, SoutheastHEALTH president and CEO. “Bringing the two health systems together will create a regional hub for offering expanded access to health care services in Southeast Missouri and the greater region Mercy serves.”

Bateman noted the strengths that Mercy has an $8 billion in operating revenue which brings to Southeast increased patient access, highest quality of care as recognized by Leapfrog and the Centers for Medicare & Medicaid Services, a sophisticated operating model, lower cost of capital and significant clinical benefits.

“Most importantly, Mercy and Southeast have a shared commitment to providing quality, family-centered care. We are excited about our future together and how it will redefine health care in our region,” Bateman said.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor to SoutheastHEALTH on the transaction. Greensfelder, Hemker & Gale, P.C. is serving as its legal counsel. Thompson Coburn LLP is serving as legal counsel to Mercy.