Baystate Health has announced it is acquiring Mercy Medical Center in Springfield.
Baystate operates several hospitals in western Massachusetts, including its flagship, Baystate Medical Center in Springfield.
According to a joint statement announcing the deal, Mercy had been dealing with “financial challenges that threatened its long-term viability.”
“Despite substantial efforts to improve its financial position, sustainability remained at risk due to inadequate reimbursement for care, industry-wide shifts such as declining payment rates, changing consumer preferences toward outpatient services, and persistent staffing shortages,” the statement said.
Trinity Health had evaluated several strategic partners and decided Baystate would provide the best chance at long-term viability for Mercy.
“This is an investment in both the past and the future of health care and economic development in western Massachusetts,” said Peter Banko, President and CEO of Baystate Health. “Today, access forces too many patients to leave the region to seek care, and we need to ensure that care is compassionate, high quality, affordable, and local. We have been and will continue to be a pillar of our community – rooted here, serving here, and helping generations thrive here.”
Montez Carter, Banko’s counterpart at Trinity Health, said the goal of the acquisition is to make sure residents in western Massachusetts continue to have access to quality medical care.
“We are confident that Baystate Health will honor Mercy’s legacy and strengthen its ability to meet the evolving needs of the community,” Carter said.
The deal is subject to regulatory approval and until that is granted, the two entities will operate separately. It is anticipated the transition will take place November 1.
Springfield U.S. Rep. Richard Neal applauded the announcement in a statement.
"As the country continues to grapple with unprecedented health care cuts resulting from President Trump’s One Big, Ugly Law, this acquisition will expand access to health care and improve services throughout the Pioneer Valley and beyond."
But Springfield State Rep. Carlos Gonzalez expressed some concerns and said he is requesting Baystate officials meet with the Springfield legislative delegation about this move. He represents the districts where Baystate and Mercy's flagships are located.
“It is vital that we ensure the continued operation of both hospitals in Springfield," Gonzalez said in a statement. "Protecting our dedicated workers and staff is essential, as is guaranteeing that our community retains access to critical medical services."
Springfield Mayor Domenic Sarno said he was thankful for Baystate's efforts to keep two hospitals in the city.
"There was a distinct possibility that Mercy/Trinity would simply close down," the mayor said. "That was unacceptable."
Trinity will continue to operate Brightside for Children and Families and other health care facilities throughout western Massachusetts.
Mercy Medical Center is a 182-bed acute care facility. Baystate Medical Center is a much larger hospital at more than 700 beds and is the region’s lone level one trauma center. Baystate Health also operates hospitals in Greenfield, Westfield and Palmer along with a string of primary care offices and other health care operations.
