An Update On Partnership Exploration

Wednesday, September 14, 2022

GENESIS HEALTH SYSTEM AND MERCYONE ANNOUNCE INTENT TO PARTNER

The two mission-driven health systems propose working together to enhance care across region

Genesis Health System and MercyOne have signed a letter of intent (LOI) to develop a strategic partnership. MercyOne is part of Trinity Health, headquartered in Livonia, Michigan. Trinity Health is one of the largest not-for-profit health care systems in the country with 88 hospitals across 25 states. (Trinity Health is not affiliated with any Iowa-based entities currently using the name, “Trinity” or “Trinity Health.”) The Genesis Health System Board of Directors unanimously selected MercyOne as its choice for partner after a thoughtful and deliberate exploration process that began in December 2021.

With the signing of the LOI, the organizations will begin a process to conduct additional due diligence and ultimately work toward finalizing the terms of a definitive agreement.

“Throughout our partnership exploration, our commitment was to select a partner willing to make significant investments in Genesis that will enhance our ability to grow, thrive and deliver more seamless integrated care in our region. MercyOne is a strong cultural fit with Genesis and shares our commitment to the Genesis Mission, Vision and Values. With this selection, we will be able to leverage the skill, talent and scale of national and regional resources while retaining local leadership and focus. We believe MercyOne is the best partner to deepen our commitment to quality, safety and patient experience. This partnership will enhance support for our workforce retention and recruitment efforts and collaboratively address the most pressing issues facing health care today,” said Doug Cropper, president and CEO of Genesis Health System.

“MercyOne and Genesis Health System are both mission-driven organizations committed to delivering the highest quality care and best patient experience to all we serve across Iowa,” said Bob Ritz, MercyOne president and CEO. “We look forward to continuing discussions and shaping a framework to enhance access to personalized, convenient health care across Eastern Iowa and Western Illinois.”

Nothing changes operationally for either health care system as a result of the LOI or throughout the due diligence process, which will occur over the course of the next several months. Patients will continue to receive the same high-quality, compassionate care they have always received from their trusted providers.

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Taken from the press release, available in its entirety here.


Partnership Exploration Process Update

Friday, April 1, 2022

Our Partnership Exploration continues, and we are on track to have a decision on whether to partner with another leading health care organization in summer 2022.

Genesis invited 30-plus organizations to participate. Genesis Health System Board of Directors has chosen finalists to further explore the partnership. The identities of these organizations remain confidential.

The Genesis Health System Board of Directors has established criteria to compare and contrast the finalists. Some of the criteria include culture and fit, enhancing our market position and clinical capabilities, and advancing our digital strategy.

Strength is Our Advantage

This partnership exploration process is to ensure that we can grow and thrive into the future in a dynamic and rapidly changing health care environment. We have been formed and strengthened by partnerships throughout our history.

"Strong" is our advantage in this process. Genesis has begun this exploration in a position of strength. Genesis has recently been twice-honored national Top 15 Health System.

This exploration process is an important part of our responsibility and due diligence to position Genesis Health System for future success, while continuing our ongoing commitment to enhance our capabilities to provide exceptional patient care to the communities we serve. This exploration will help us to determine whether we will partner vs. remain independent.


CEO Doug Cropper Answers Questions Regarding Partnership Exploration


GHS Explores Potential Partnership Opportunities

Wednesday, December 1, 2022

Genesis Health System has been a trusted partner to our patients and communities as we’ve navigated through the pandemic. Together, we have demonstrated incredible resilience, guided by our mission to provide compassionate, quality health services to all those in need.

Through this crisis, we have learned and grown as a stronger, more nimble organization by building on our proven track record of clinical excellence and our deep history of providing outstanding care to the people and communities across our region.

Our efforts have resulted in continued and meaningful successes, including national recognition as a Top 15 Health System, Top-Ranked Community Hospital in Iowa, a system performing within the top 1% of the nation in patient safety, and a leader in IT excellence.

We are proud of all we’ve accomplished together, and we are focused on ensuring our continued role as a leading health care system that is committed to all the communities we serve. While we are in a position of strength, we have a responsibility to chart a path forward that will help us address increasing market pressures.

Therefore, we are beginning a thoughtful process to explore the possibility of partnering with another leading health care system to enhance our ability to deliver safe, quality and compassionate care.

The strength of Genesis Health System has been built on a 150-year history of meaningful collaboration, grounded in a values-based culture. We have seen our organization become better through partnerships, beginning with the union of Mercy and St. Luke’s hospitals to form Genesis Health System in 1994, and the welcoming of other community hospitals and organizations into the Genesis Health System family in the last 25+ years. These experiences enable us to move into the partnership exploration process with confidence and clarity about who we are and where we choose to go.

This partnership exploration process is to ensure that we can grow and thrive into the future in a dynamic and rapidly changing health care environment.

As we look at potential partners, we will only consider those who are well positioned to advance our proven dedication to clinical excellence and help us to address key areas of opportunity:

  • Growth: Strategically scale to enhance local delivery of care that meets the needs of our communities.
  • Culture: Reinforce and deepen our cultural commitment to quality, safety and patient experience, with a keen focus on putting people first.
  • Workforce: Enhance support and resources for our workforce and create a new pipeline for recruiting across our health system – ensuring Genesis is an organization in which our staff is proud to work, and a health system that others are excited to join.
  • Local: Increase our local investment and maintain local decision-making based on what is best for all those we serve.

We know that our success is based on our ability to make local, purposeful decisions that are in the best interest of our patients, communities, providers and employees. As we move forward, we will be convening a Clinical Advisory Group, as well as a Leaders and Employee Advisory Group, to help ensure that voices from across our entire organization are heard and considered throughout this process. Genesis Health System’s Board of Directors also will reflect the critical perspectives of communities throughout our region.

It is important to note that we have not yet decided our final course of action. We will conduct a controlled competitive process to thoughtfully evaluate a number of potential opportunities and reach an informed decision about the path forward – whether with a potential partner or remaining as an independent system – by summer 2022.

We are committed to keeping everyone informed of any significant updates throughout the coming months. This site will provide up-to-date information to address questions you may have regarding this partnership exploration process.

As always, we sincerely appreciate your partnership and support of Genesis Health System as we continue to serve and champion all those who call our region home. We look forward to our future – together.

Steve Bahls

Steve Bahls

Chair, Genesis Health System Board of Directors

Doug Cropper

Doug Cropper

President and CEO, Genesis Health System


FREQUENTLY ASKED QUESTIONS

Why is Genesis Health System exploring a potential partner at this time?

The Board of Directors and Leadership Team have been carefully evaluating the best path forward to ensure that Genesis Health System can continue enhancing its ability to deliver the safest, highest quality of care and an excellent patient experience to all those we serve. As part of this ongoing commitment, we are continually looking for ways to advance our organization’s mission. We are beginning a thoughtful process to explore the possibility of partnering with another leading health care system.

This partnership exploration process is to ensure that we can grow and thrive into the future in a dynamic and rapidly changing health care environment.

This is an important part of our responsibility and due diligence to position Genesis Health System for future success. Please be assured that we have not yet decided our final course of action. We are fully assessing all current and future opportunities in a thoughtful and organized manner to determine if there is a meaningful partnership opportunity for Genesis Health System.

What are important considerations when evaluating health care systems that could potentially partner with Genesis Health System?

Potential partners must be well positioned to advance our proven dedication to clinical excellence and help us to address key areas of opportunity:

  • Growth: Strategically scale to enhance local delivery of care that meets the needs of our communities.
  • Culture: Reinforce and deepen our cultural commitment to quality, safety and patient experience, with a keen focus on putting people first.
  • Workforce: Enhance support and resources for our workforce and create a new pipeline for recruiting across our health system – ensuring Genesis is an organization in which our staff is proud to work, and a health system that others are excited to join.
  • Local: Increase our local investment and maintain local decision-making based on what is best for all those we serve.

Is there urgency? Is Genesis Health System ok, financially?

There is no urgency and Genesis Health System is in a position of strength. We do not require a partner to continue advancing our mission. However, we recognize that a partnership may create additional opportunities to address market pressures and provide additional scale as we continually align our services with the needs of our communities.

This exploration process is an important part of our responsibility and due diligence to position Genesis Health System for future success while continuing our ongoing commitment to continually enhance our capabilities to provide exceptional patient care to the communities we serve.

What changes can patients expect to see as a result of this partnership? Will this affect patient care?

Our patients will continue to receive the same compassionate, high-quality care that they have come to expect from Genesis Health System. They can continue to see the providers they know and trust, and there will be no changes to insurance coverage or the way they experience care.

Our partnership exploration process is an important part of our responsibility to ensure Genesis Health System can continue enhancing its ability to deliver the safest, highest quality of care and an excellent patient experience to all those we serve.

How might a potential partnership affect our commitment to our communities’ most vulnerable populations?

A critical component of our vision is expanding access to affordable, quality care for all those living and receiving care across our region; identifying a potential partner that can assist us in realizing that goal is a priority.

A potential partnership could enhance our ability to expand local access to comprehensive care that meets the specific health needs of our patients and communities – especially in key, complex clinical areas that require subspecialists.

If we partner with a system that is outside of our region, how will we ensure that our Foundation can continue to invest donations directly to Genesis Health System and the programs, resources and services that matter to our local communities?

We deeply value the generosity of all of our donors. Any potential partner must ensure that our Genesis Foundation and Philanthropy Boards are empowered to invest all contributions into programs, resources and services that directly benefit our local communities, honor the integrity of all of our local Foundations, and honor the intent of the original gifts.

Who will be involved in exploring a potential partner? Is Genesis Health System working with key leaders in the community?

Our Board and Leadership Team are embarking on an exploration process to determine if there may be a meaningful opportunity to partner with another leading health care system. Genesis Health System’s Board of Directors is comprised of local leaders who will ensure any decisions made reflect the critical perspectives of communities throughout our region.

What is the process of finding a potential partner?

The Genesis Health System Board of Directors and the Leadership Team will undergo a deliberate and thoughtful process, working with outside advisors as needed, to determine what is in the best interest of our employees, providers, patients and the communities we serve.

Over the coming months, the Board and our Leadership Team will conduct a controlled competitive process to thoughtfully evaluate a number of potential opportunities with other leading health care systems.

We will be convening a Clinical Advisory Group, as well as a Leaders and Employee Advisory Group, to help ensure that voices from across our entire organization are heard and considered throughout this process. Genesis Health System’s Board of Directors also will reflect the critical perspectives of communities throughout our region.

What is the timeline for this potential partnership?

We expect to reach an informed decision about the path forward – whether with a potential partner or remaining as an independent system – by summer 2022.