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Celebrating 100 Years of Caring for our Community

Mercy In The Press

Mercy to Become Part Of A New Regional Health Care Network

Catholic Health Initiatives, PeaceHealth agree 
to form integrated regional health care network 
to serve Northwest U.S.
ENGLEWOOD, COLO. and VANCOUVER, WASH. – Catholic 
Health Initiatives and PeaceHealth, two 
nonprofit health care systems, have signed a 
nonbinding letter of intent to create a new 
regional health care system with the ability to 
improve care and access for individuals, 
employers and communities across the northwest 
U.S. 
The partnership will create an integrated health 
system in the region, combining seven Catholic 
Health Initiatives hospitals in Washington and 
Oregon with nine PeaceHealth hospitals in 
Washington, Oregon and Alaska. The new 
organization will include nearly 26,000 
employees and about 950 employed physicians 
serving in hospitals, physician clinics, 
outpatient care clinics, long-term care 
facilities, laboratories and private homes 
across the region.
The new organization, with annual revenues of 
almost $4 billion, will build on the strengths 
of both organizations to better manage care and 
resources in a rapidly changing health care 
environment. 
“As a part of Catholic Health Initiatives, we 
believe this partnership is exciting news for 
the Mercy organization and the communities we 
serve” said Kelly C. Morgan, president and chief 
executive officer of Mercy Medical Center. 
Mercy services that will become part of the new 
regional health system being formed by Catholic 
Health Initiatives (CHI) and PeaceHealth include 
hospitals and services in Alaska, Washington and 
Oregon. 
“Catholic Health Initiatives and PeaceHealth 
share common cultures and values,” said Kevin E. 
Lofton, president and chief executive officer of 
Englewood, Colo.-based CHI, the nation’s second 
largest faith-based health system. “We see this 
as a natural evolution – a perfect way to share 
economies of skill and scale, improve health 
services and reinforce our common mission to 
create and nurture healthier communities.”
Alan Yordy, president and chief mission officer 
of Vancouver, Wash.-based PeaceHealth, 
said, “PeaceHealth and Catholic Health 
Initiatives have long traditions of serving 
communities throughout the Northwest and 
providing health services to all people. Our 
shared mission and combined strengths will allow 
us to better serve individuals with safe, high 
quality networks of care built upon more than a 
century of service in the Northwest.”
The nonbinding letter of intent is the first 
step in the partnership process. Leaders of 
Catholic Health Initiatives and PeaceHealth 
expect to form the new system before June 30, 
2013, after completing the due diligence and 
approval process. The two organizations will be 
equal partners in the fully integrated health 
care system serving the northwest region. 
Discussions were prompted by a rapidly changing 
health care environment that demands a more 
coordinated, integrated approach to the way 
health and wellness services are delivered to 
individuals and communities.  It also demands 
the ability to accept more financial risk in 
caring for defined populations, such as Medicaid 
recipients. The size and scale of the new 
organization will allow it to form additional 
collaborations and networks of care that will 
include physicians, hospitals, insurers and 
other caregivers, increasing access to high-
quality health services while reducing costs. 
The partners will reduce costs by making 
infrastructure investments more efficiently as a 
single organization in areas such as information 
technology systems.
The integration of the two organizations is 
expected to take place over time. 
About Catholic Health Initiatives: Catholic 
Health Initiatives is a national nonprofit 
health system with headquarters in Englewood, 
Colo. The faith-based system operates in 19 
states and includes 76 hospitals; 40 long-term 
care, assisted- and residential-living 
facilities; two community health-services 
organizations; two accredited nursing colleges; 
and home health agencies. In fiscal year 2011, 
CHI provided more than $612 million in charity 
care and community benefit systemwide, including 
services for the poor, free clinics, education 
and research. With annual revenues of more than 
$10.5 billion, CHI is the nation's second-
largest Catholic health care system.

About PeaceHealth: Peace Health is a not-for-
profit health care system with services located 
in Alaska, Washington and Oregon.  PeaceHealth 
operates a large multi-specialty medical group 
in all three states, laboratories, a Medicaid 
health plan (Columbia United Providers), and 
eight medical centers, three which are critical 
access hospitals. A new critical access hospital 
in Friday Harbor, Wash., will open in late 2012. 
Founded by the Sisters of St. Joseph of Peace, 
PeaceHealth has provided exceptional medicine 
and compassionate care to Northwest communities 
for more than a century. Annual revenues are 
approximately $2.3 billion, with $192 million 
provided last year in charity care and community 
benefit. PeaceHealth clinics have more than one 
million patient visits annually, and serve all 
people who seek their services. PeaceHealth 
consistently receives national recognition for 
quality and innovation in patient-centered care, 
patient safety, health care technology and cost 
efficiency. 
News Media Contacts:
Michael Romano 
(303) 383-2720
michaelromano@catholichealth.net 
Kathleen Nickel
(541) 677-2423
kathleennickel@chiwest.com 
Kevin Lamb 
(541) 868-3475
klamb2@peacehealth.org 

 

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