August 2011
Mercy extends MOU, begins review
In its August meeting, Mercy Hospital’s Board of Directors extended the Memorandum of Understanding with Essentia Health regarding a possible affiliation. The extension allows for the completion of the due diligence process by December 31, 2011. Mercy also recently received the information from Essentia Health that was requested as part of phase 2 of the due diligence process. Mercy’s legal counsel is currently reviewing that information. Phase 3 of the due diligence process is just getting underway.
Mercy recognizes that community members have questions and concerns about the possible affiliation. The process so far has focused on the exchange of a broad, high level overview of information. The specific operational questions being asked by community members--the details on how this possible affiliation would work--are just starting to be addressed in phase 3 of the due diligence process.
Due diligence is the investigation into the details of a potential agreement, such as an examination of operations and management and the verification of material facts. Through this process, Mercy and Essentia Health are addressing the many questions that need to be answered before a final decision can be made about an affiliation agreement.
Mercy is committed to keeping its employees and the community informed as the integration talks continue. Mercy plans to conduct employee and community forums at the end of phase 3 when operational questions can be addressed. Please watch for periodic updates in local newspapers and in the hospital’s Lifeline newsletter.