Mercy Health Partners News

The Mercy Health Partners Board of Directors has determined that it is no longer economically feasible to build a replacement hospital on the Baptist Riverside campus.  The unanimous decision not to rebuild followed a six-month strategic planning process which included extensive interviews with physicians, staff, volunteers and community leaders as well as an exhaustive review of financial data, market trends and emerging national policy.

Mercy administration emphasized that the Medical Office Buildings on the Riverside campus will remain open and that it expects most of the physicians who have practices on the Riverside campus to remain in their current offices.
 
The Board cited the following specific reasons for this decision:

• Over the past year, the economic situation across the United States has changed dramatically forcing businesses, both for-profit and not-for-profit alike, to reassess their operating models and suspend major capital expenditures.  Mercy is no exception.

• Individuals throughout the communities we serve have found their own personal situations changed as business closings and lay-offs across the region have left many jobless or under-employed.  This situation has had a significant impact on Mercy’s financial performance.   For example, in 2008 alone, the Mercy system provided over $129 million in uncompensated care to the poor, uninsured and underinsured.

• The Obama Administration has announced its intention to enact sweeping healthcare reform this year.  The results of this effort are unpredictable at best.  The only outcome that appears certain is that federal reimbursements for services provided by hospitals such as those provided through the Medicare and Medicaid/TennCare programs will be reduced, placing even more strain on our already challenged operating budgets.

Mercy President and CEO Debra London said, “As a faith-based healthcare provider, Mercy is called to be a good steward of all our resources so that we can continue to carry out our mission to those who need us most. Given our current economic situation and the unpredictability of the national healthcare policy debate, our Board concluded that a significant change in our strategic plan had to be made.”   London added, “We remain committed to the South Knoxville community and hope to announce soon our plans to make new outpatient services available to our patients in that part of our city.  We are particularly pleased that the physicians on the Riverside campus have expressed their intent to continue serving their patients there.” 

Mercy Board Chair, Mintha Roach stated, “This decision, while difficult, will allow us to move forward with our plans to build Mercy Health Partners into the region’s premier healthcare provider.”

Board member Nathan Hunter added, “Baptist Hospital of East Tennessee served the citizens of this region extremely well for decades and while I had certainly hoped we would be able to rebuild on the Riverside site, I know I speak for all the members of the Board in saying that the unanimous decision we made will allow Mercy Health Partners to build upon the Baptist and St. Mary’s legacies for generations to come.”

The Board and Administration of Mercy Health Partners remain engaged in a long-range strategic planning process that will guide the development of the Mercy system over the next three-to-five years.  In the meantime, the Board has reinforced its commitment to providing excellent care at its facilities throughout the region.

Mercy Health Partners was formed by the merger of St. Mary’s Health System and Baptist Health System of East Tennessee in 2008.  The new healthcare system operates acute-care hospitals and many other healthcare facilities across East Tennessee.  More than 1,000 of the area’s leading physicians are on the active staff at Mercy facilities.  One of East Tennessee’s largest employers, Mercy has 5,700 associates dedicated to providing compassionate care using the latest medical technology.

For physician referral and service information, please call the Ask Mercy phone line at 632-5200 (toll-free at 877-368-7362).  A complete list of Mercy physicians, facilities, services and extensive health information is available online at www.mercy.com. 

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Contact:   Craig Griffith
  865-545-7565 (office)
  865-202-6520 (cell)

  Gretchen Church
  865-549-4838 (office)
  865-607-9366 (cell)