FAQs
Quick Overview
Q: Why did Mercy Health Partners become Tennova Healthcare?
Q: What is included in the transaction?
Q: What changes as of October 1, 2011?
Q: What about the Sisters, who have long been associated with Mercy?
Physicians
Q: How does the transaction affect doctors?
Q: Will physicians need to reapply for hospital privileges?
Q: Will Tennova still have employed doctors / hospitalists?
The Tennova Name
Q: Why is the Mercy brand name changing?
Q: Why are the individual hospital names changing?
Q: What about the St. Mary’s name — why not use it?
Q: Does the name change have any impact on patients in terms of services or insurance?
Q: How does this name change affect doctors' practices and clinics?
About Health Management
Q:; What can you tell us about Health Management Associates?
Q: What will change when Health Management begins to operate the Mercy hospitals?
Q:; Why does Health Management want to partner with Mercy?
Q: What about Health Management’s leadership?
Q: Is there benefit to the East Tennessee region having Health Management here?
Q: Are there financial benefits as well?
Q: Does Health Management have any other facilities in Tennessee?
Facilities & Services
Q: What is the number one item Health Management intends to change at the Tennova hospitals?
Q: Will there be any service closures as a result of this transaction?
Q: Will the system lose its Catholic affiliation?
Q: What about Mercy’s charity care policy?
Q: Does Health Management intend to stay in East Tennessee for a while?
Q: What are the plans for the Riverside (Baptist Downtown) campus?
Management, Operations & Commitment to Patient Care
Q: What is the long-term plan for Tennova Healthcare?
Q: What can patients and communities expect to see?
Q: What are the ways Health Management will benefit Tennova?
About the Transaction
Q: When did the process begin?
Q: Why did Mercy choose to go in this direction?
Q: Why did Mercy choose Health Management?
Q: What is Health Management’s first priority during the transition?
Volunteers
Q: What’s going to happen to the volunteer programs / activities at Mercy’s hospitals?
Q: What happens to the Foundation?
Quick Overview
Q: Why did Mercy Health Partners become Tennova Healthcare?
A: Officials with Health Management Associates (NYSE: HMA) and Mercy Health Partners announced on October 1, 2011 the completion of Health Management’s acquisition of the Knoxville-based health care system. As a result of this agreement, Health Management has acquired or leased all seven of Mercy’s hospitals in East Tennessee.
The acquisition has received all necessary regulatory and papal approvals, and the system’s new name, previously announced as Tennova Healthcare, became effective as of the announcement date.
Q: What is included in the transaction?
A: All of Mercy’s hospitals and facilities in East Tennessee will be included in the transaction.
Hospitals, with licensed beds, included in the transaction are:
- 401-bed Physicians Regional Medical Center in Knoxville (previously Mercy Medical Center St. Mary’s)
- 101-bed Turkey Creek Medical Center in Knoxville (previously Mercy Medical Center West)
- 108-bed North Knoxville Medical Center in Powell (previously Mercy Medical Center North)
- 58-bed Jefferson Memorial Hospital in Jefferson City (previously St. Mary’s Jefferson Memorial Hospital)
- 74-bed Newport Medical Center (formerly Baptist Hospital of Cocke County)
- 66-bed LaFollette Medical Center (formerly St. Mary’s Medical Center of Campbell County)
- 25-bed St. Mary’s Medical Center of Scott County in Oneida (The name will remain the same as it will not be a part of the Tennova system as of May 2012, when its current lease will expire.)
Health Management’s subsidiary will also acquire substantially all of Mercy’s ancillary health care operations (which are licensed to operate 197 beds) located in the Knoxville, Tenn., region associated with the operations of the above hospitals, as well as the former Riverside hospital campus (which is licensed to operate 293 beds.)
Q: What changes as of October 1, 2011?
A: Health Management has worked alongside Mercy’s leadership, Board, doctors and Associates to assess operations and determine the best strategies to ensure the future success of the health care system. Now that the acquisition is complete, Health Management will enable the newly named Tennova Healthcare system to grow, compete, and fulfill their vision of being the leading provider of health care in the region. Patients will continue to receive the high-quality care they are accustomed to. Doctors will benefit from the large network and increased capital commitment.
In addition, Tennova Healthcare has named a mix of new and existing leadership at each of its hospital facilities. System leadership, including an East Tennessee market CEO, will soon be named and in place. Beginning immediately, individual Tennova Healthcare hospital CEOs are:
- Jeff Ashin – CEO, Physicians Regional Medical Center (formerly Mercy Medical Center St. Mary’s).
- David Bunch – CEO, Jefferson Memorial Hospital (formerly St. Mary’s Jefferson Memorial Hospital).
- Rob Followell – CEO, North Knoxville Medical Center (formerly Mercy Medical Center North).
- Jim Heitzenrater – CEO, LaFollette Medical Center (formerly St. Mary’s Medical Center of Campbell County).
- Lance Jones – CEO, Turkey Creek Medical Center (formerly Mercy Medical Center West). Lance comes to us from Carolina Pines Medical Center, Hartsville, SC, part of Health Management Associates, where he was CEO.
- Patti Ketterman – CEO, Newport Medical Center (formerly Baptist Hospital of Cocke County).
Tennova Healthcare’s affiliation with Health Management, a company now with 66 hospitals in 15 states, will allow the hospital system to leverage economies of scale for access to capital and purchasing power and share clinical best practices, providing more efficient delivery of services to patients in East Tennessee. Health Management will support the hospitals with financial resources and operational and clinical expertise in a number of impactful areas — all which work together to improve the overall delivery of care.
Q: What about the Sisters, who have long been associated with Mercy?
A: Health Management welcomes the Sisters’ presence. In fact, we are retaining a Vice President of Mission, Becky Dodson, who will continue to guide this legacy. All of the sisters have been provided for and will remain active at Tennova facilities.
Health Management understands the unique role here of the Sisters of Mercy. The Sisters will be part of the health system to support it as long as they are able. Their desire is to be here for patients and their families, Associates, doctors, and volunteers.
Health Management has also asked the Sisters to reflect on a way to continue their tradition of faith based care, such as a memoriam. They will reveal their plans soon.
Doctors
Q: How does the transaction affect doctors?
A: There will be no change in medical staff status or privileges for any doctors on the medical staff of any Tennova facilities. Health Management, together with local leadership, will enhance recruitment and retention of clinical talent and work diligently to continually strengthen relationships with medical staff.
Q: Will doctors need to reapply for hospital privileges?
A: No. Health Management will maintain the medical staff status and privileges for the doctors currently on the medical staff at Mercy/Tennova facilities.
Q: Will Tennova still have employed doctors / hospitalists?
A: Yes.
The Tennova Name
Q: Why is the Mercy brand name changing?
A: As part of the agreement, the Mercy system name must change because other hospitals using that name will continue to operate under Catholic Health Partners, the previous parent company of Mercy.
Q: Why are the individual hospital names changing?
A: Several of the hospital names included the Mercy name – e.g., Mercy West. Therefore, the names legally needed to change. Tennova Healthcare will be the overarching brand for each facility and the hospital names will now be:
- Physicians Regional Medical Center (previously Mercy Medical Center St. Mary’s)
- Turkey Creek Medical Center (previously Mercy Medical Center West)
- Jefferson Memorial Hospital (previously St. Mary’s Jefferson Memorial Hospital)
- Newport Medical Center (previously Baptist Hospital of Cocke County)
- LaFollette Medical Center (previously St. Mary’s Medical Center of Campbell County)
- North Knoxville Medical Center (previously Mercy Medical Center North in Powell)
- St. Mary’s Medical Center Scott County (name will remain as it will not be part of the Tennova system after May 2012)
Q: What about the St. Mary’s name — why not use it?
A: While both the St. Mary's and Baptist names carry with them a rich history and great sentimental value, the new name reflects a new beginning for both the system and, indeed, the way health care is delivered throughout East Tennessee.
Q: Does the name change have any impact on patients in terms of services or insurance?
A: While the name itself has no significant impact on the care and services that patients will receive, the meaning behind the name will. Patients will begin to see a more forward-thinking organization overall – focused on delivering patient-centered, innovative health care.
In addition, all current insurance plans accepted by Mercy facilities will continue and new ones may be added.
Q: How does this name change affect doctors' practices and clinics?
A: Most will also be changing (for instance, Mercy Cardiology will now be Tennova Cardiology Services), while others will remain the same and not include Tennova (for example, Jefferson Pulmonary Group will still be the same). We have been communicating these changes directly with the doctors' offices.
About Health Management
Q: What can you tell us about Health Management Associates?
A: For more than 30 years, Health Management Associates, Inc. has successfully partnered with local communities to provide outstanding health care services. It now owns and operates hospitals in partnership with mid-size communities and local hospital leaders, doctors, and caregivers throughout the United States.
Through its subsidiaries, Health Management has grown to now operate 66 hospitals in 15 states with approximately 11,600 licensed beds. The company employs approximately 35,000 dedicated Associates and hosts a total medical staff of approximately 10,000 doctors. To learn more, visit www.hma.com.
Q: What will change when Health Management begins to operate the Mercy hospitals?
A: In terms of the health care services Mercy – now Tennova Healthcare – provides, we expect this to be an opportunity to grow and expand. In fact, Health Management plans to invest at least a minimum of $180 million over the next five years, and those specific plans will be shared as soon as they are confirmed.
Today, it’s hard to say exactly what all the changes will be; however, one thing that won’t change is Mercy's commitment to providing high-quality patient care.
While day-to-day operations at Mercy’s hospitals will remain largely unchanged, this relationship will allow the hospitals to grow, compete, and fulfill the mission and vision of being the leading provider of health care in the region. And, hospital Associates, doctors and patients will soon benefit from being part of large network of hospitals and a strong financial partner.
Mercy’s affiliation with Health Management, a company now with 66 hospitals in 15 states, will allow the hospitals to leverage economies of scale for access to capital and purchasing power and share clinical best practices, providing more efficient delivery of services to patients in East Tennessee. Health Management will support the hospitals with financial resources and operational and clinical expertise in a number of important areas, all which work together to improve the overall delivery of care.
Q: Why does Health Management want to partner with Mercy?
A: Health Management has a proven track record of being extremely selective when it comes to investing in hospitals. Its strategy is to invest in hospitals that not only fit well within its existing care delivery model, but that also can grow with the company for years to come. As such, it has earned the national reputation of being a strong operator of high-quality hospitals and medical practices. The company has successfully partnered with not-for-profits, like Mercy’s facilities, in the past, and Health Management is excited about the potential it sees in Mercy, its hospitals, and East Tennessee.
Q: What about Health Management’s leadership?
- A: Health Management has a highly talented and deep network of leaders, who span a variety of areas of expertise. Health Management has a team of dedicated home-office resources available to support each of its hospitals, including:
- Clinical operations
- Physician relations
- Compliance and risk management
- Information systems
- Human resources
- Revenue cycle management
- Managed care contracting
Q: Is there benefit to the East Tennessee region having Health Management here?
A: Absolutely. This is a significant move in the life of Mercy that will strengthen the system’s hospitals and the quality of care for everyone in our community. Through Health Management, the hospitals will be able to invest in their facilities and new technologies, and provide the training needed to ensure the best, most current care is available in our community.
Q: Are there financial benefits as well?
A: Yes, there are major financial benefits. An estimated $4.5 million in new state and local tax revenues annually will be generated by the change in status of the hospitals to tax-paying organizations.
Q: Does Health Management have any other facilities in Tennessee?
A: Including the newly named Tennova Healthcare hospitals, Health Management now operates 10 hospitals in Tennessee. In addition to the seven Tennova facilities, Health Management also operates Harton Regional Medical Center in Tullahoma, Jamestown Regional Medical Center in Jamestown and University Medical Center in Lebanon.
Facilities & Services
Q: What is the number one item Health Management intends to change at the Tennova hospitals?
A: There is no one thing that needs to change; rather, what is needed is an infusion of capital to upgrade facilities, add equipment, and expand services. Health Management brings a variety of these resources and capital to Tennova Healthcare. This partnership will maximize talents, merging what works well to continue a focus on quality care and patient satisfaction.
Q: Will there be service enhancements or other changes as a result of Health Management’s acquisition of Mercy?
A: Local leadership and Health Management will work closely together with all doctors to develop short- and long-term plans that are based on community need. This acquisition will allow us to strengthen and enhance existing services, and continue to invest in new technology, talent, and training.
Q: Will there be any service closures as a result of this transaction?
A: There are no current plans. It would only make sense that Health Management’s goal is to expand and enhance the quality and range of services currently offered – including oncology, advanced General Surgery, OB/GYN and Women's and GI services.
Q: Will the system lose its Catholic affiliation?
A: Yes. Though the hospitals will no longer have an official connection to the Sisters of Mercy or the Catholic Church, many of the religious traditions and values will continue to be part of the culture of the hospitals. Chaplaincy programs for spiritual care services will continue, and religious statuary and other symbols that the Sisters of Mercy leave at our facilities will remain. Health Management would also like the local Sisters to continue to serve in their current capacity in the facilities.
Q: What about Mercy’s charity care policy?
A: The policy of both Mercy and Health Management is to provide high quality health care services to all patients regardless of insurance coverage or ability to pay. Under Health Management, our hospitals will continue to follow charity care policies that are at least as favorable as the policies currently in place.
Q: Does Health Management intend to stay in East Tennessee for a while?
A: Absolutely. We are committed to making Tennova Healthcare the leader in each of its communities. Our organization has a history of being in it for the long haul. In fact, the first hospital Health Management acquired, Paintsville, Ky., is still part of the company. Health Management has an outstanding track record of running health facilities and being committed to the community.
Q: What are the plans for the Riverside (Baptist Downtown) campus?
A: The Riverside campus is part of the acquisition so the facility will become part of Tennova, though it will not be a hospital. We are currently exploring options with several firms and individuals on the best use of the property that will make it part of a vibrant beautification of the riverfront.
Management, Operations & Commitment to Patient Care
Q: What is the long-term plan for Tennova Healthcare?
A: Now that the transaction is complete, Tennova and Health Management’s leadership teams will work together and with doctors to create the short- and long-term strategic plan for the hospitals.
Q: What can patients and the communities expect to see?
A: As the 59 other communities served by Health Management have experienced, East Tennessee is gaining a long-term community partner that will strive for continual improvement in the overall delivery of care being provided at Tennova’s hospitals.
Q: What are the ways Health Management will benefit Tennova?
A: In the next five years, Health Management will commit at least $180 million to the system. Health Management will also support the hospitals with financial resources, and operational and clinical expertise in a number of impactful areas, including:
- The implementation of the latest in health information technology, equipment and quality initiatives.
- Facility improvements and upgrades, including new equipment, equipment replacement, facility renovations, medical office space, technology, and other capital improvements.
- Further development of existing service lines, including cardiology, orthopedics, surgical specialties, emergency services, and primary care base.
- Enhanced recruitment of doctors and employee retention efforts.
- Access to experts, resources, and best practices of a national health care provider network.
About the Transaction
Q: When did the process begin?
A: Mercy Health Partners and Catholic Health Partners proactively and deliberately explored a variety of ways to continue serving the community at the highest level for some time. Ultimately, Mercy and CHP felt that Health Management was the best fit for this organization.
Q: Why did Mercy choose to go in this direction?
A: First and foremost, Health Management’s commitment to Mercy Health Partners will allow the system to continue to provide residents in East Tennessee the highest level of care. Health Management will provide Mercy with the resources to grow as health care changes and to look to the future with confidence and optimism.
In today’s economy and with the upcoming demands of health care reform, hospitals must find smarter, better, and more efficient ways to make use of dwindling resources.
The leaders of Mercy looked proactively and deliberately for a smart, strategic partner with financial strength and capabilities, an ability to implement and act swiftly, and a culture known for positive engagement of doctors. After much deliberation and exploring every option, Mercy and CHP determined that Health Management was the best fit – strategically, financially, and culturally – for the organization.
Q: Why did Mercy choose Health Management?
A: Health Management is the clear choice for Mercy due to their understanding of and commitment to Mercy’s mission and values, and the company’s success in partnering with not-for-profit, Catholic hospitals, like Mercy, in the past. Health Management will allow Mercy to build on its strategic plan, maintain its mission, and continually improve upon its quality, financial position, services, and facilities.
Nationally, regionally, and locally, the trend is toward larger, more sophisticated and stronger health care organizations that can weather these challenging times. Following a very lengthy process, Health Management seems to be the best match to the current culture.
Q: What is Health Management’s first priority during the transition?
A: This isn’t about Health Management, it’s about Tennova and the communities, Associates, doctors, and patients we serve. First and foremost, Health Management is committed to making the transition a smooth one for all of Mercy’s Associates, doctors and volunteers. Throughout the transition, providing quality care for patients is the priority. The transition process will take some time and we need everyone’s help to make it a success. We appreciate your dedication to this new partnership.
Volunteers
Q: What’s going to happen to the volunteer programs and activities at Mercy’s hospitals?
A: Both Mercy and Health Management believe a strong, active volunteer program is vital to the ongoing success of each hospital and that will continue.
Q: What happens to the Foundation?
A: All assets currently in the Mercy Foundation, or given in the future, will remain under the control of the Foundation and its leadership. The Foundation will be separate and independent from Health Management and remains committed to philanthropic health care activities across the region. Health Management will have no financial or governing relationship with the Foundation whatsoever.
