SoutheastHEALTH joins Mercy health care system

SoutheastHEALTH leaders announced an official partnership with St. Louis-based Mercy on Tuesday, Aug. 1, affiliating the hospital network with one of the nation’s largest health care systems.

In January of this year, the two organizations announced they had signed a letter signaling their intent to merge. The merger came about through SoutheastHEALTH’s Project Forward Vision process, which launched in May 2022 to identify potential partners.

“That decision was based on Mercy’s exceptional quality, their financial strength and their proven track record,” Ken Bateman, SoutheastHEALTH’s president and CEO, said during a news conference Tuesday.

Mercy, an $8 billion organization, operates nearly 50 health care systems with 1,500 clinics and more than 40,000 employees across seven southern states.

“Health care is absolutely personal, and it’s local. Our goal as we form this new partnership and bring (SoutheastHEALTH) into Mercy is that the needs of this community are understood ... and that we make sure to build a sustainable path forward,” Mercy president and CEO Steve Mackin said. “Every single community that we are in was the product of the community reaching out to Mercy to see if we could reach a partnership and provide health care services. That’s why the model is sustainable. It starts with a bond and a formal relationship. Our ministry has been around 195 years, and together we will go into our third century.”

Alyssa Lunsford ~alunsford@semissourian.com Mercy board members stand for a photo during the Tuesday, Aug. 1, news conference. The news conference informed the upcoming changes and benefits of SoutheastHEALTH and Mercy combining.

Alyssa Lunsford ~alunsford@semissourian.com Mercy board members stand for a photo during the Tuesday, Aug. 1, news conference. The news conference informed the upcoming changes and benefits of SoutheastHEALTH and Mercy combining.

During Tuesday’s news conference, Bateman, Mackin and SoutheastHEALTH system board chairman Jim Dufek formally signed a commitment to the merger. The transaction will be subject to customary closing conditions, including required third-party approvals. Bateman estimated the process will be finalized by the end of the calendar year.

“After everything is finalized and has passed the regulatory hurdles, we’ll begin a thoughtful listening tour, engaging the whole team here at SoutheastHEALTH with a plan for it,” Mackin said.

Among the goals of that process, he added, would be to figure out clinical gaps and staffing opportunities.

Some changes will occur once the transition is complete. Bateman said SoutheastHEALTH will be renamed, most likely to Mercy Southeast. A new IT system and a medical records system to facilitate easier communication between patients and physicians are also on the horizon thanks to Mercy’s resources.

“I think many employees will notice the additional resources that Mercy will bring to the table. The intent is to put us on the Epic electronic medical records. That will be a huge lift for them to implement, but it will be a huge benefit for our clinical team,” Bateman said. “I believe within the next five years, the things that are helping now with AI, technology and other aspects are going to enter into health care in a rapid pace. That’s where Mercy will help us keep our costs down and keep us technologically advanced, and that’s where I think the patients will benefit as well as the hospital.”

The SoutheastHEALTH board with Mercy president, Steve Mackin, SoutheastHEALTH system board chairmen Jim Dufek and SoutheastHEALTH president and CEO Ken Bateman on Tuesday, Aug. 1, during a news conference.Alyssa Lunsford

The SoutheastHEALTH board with Mercy president, Steve Mackin, SoutheastHEALTH system board chairmen Jim Dufek and SoutheastHEALTH president and CEO Ken Bateman on Tuesday, Aug. 1, during a news conference.Alyssa Lunsford

Mackin said he wants the needs of the community to be met and the hospital has the potential to be a hub for patients across the region.

“It’s hard for a health system to extend into new communities unless there’s a strong record of leadership in the community, there’s a track record of investment, and there’s a vision of where they want to go. The (SoutheastHEALTH) board and Ken (Bateman) and the leadership team clearly have a thoughtful vision for the future,” he added. “They just needed a partner.”

Bateman said Mercy was a top choice to affiliate with due to its resources, finances and proximity. Many patients who need to leave SoutheastHEALTH receive additional care at Mercy facilities in St. Louis. He said challenges such as inflation, workforce shortages and the effects of the coronavirus pandemic led to the search for another organization to ally with.

“Rather than address these challenges in the short term,” he added, “we sought a solution that would create strength and growth for SoutheastHEALTH not only for years, but for decades to come.”