Mercy Health System of Southeastern Pennsylvania serves a portion of the state, but covers practically the entire continuum of care. The health system operates four acute care hospitals, as well as community health care centers and home health care agencies. The system's hospitals include Mercy Philadelphia Hospital (210 beds), Mercy Fitzgerald Hospital (220 beds), Mercy Suburban Hospital (130 beds), and Nazareth Hospital (200 beds). It also offers a managed health care plan to individuals who qualify for Medicaid or Medicare coverage through an affiliation with Gateway Health Plan. Mercy Health System is part of Catholic Health East.
Mercy Health System sold its St. Agnes Continuing Care Center, a facility focused exclusively on providing health services for the area's elderly, to RehabCare Group in late 2009. The system sold the continuing care center (now known as Triumph Hospital Philadelphia) to focus on its other medical operations. Mercy Health System continues to run its Mercy LIFE program, which provides home health services for elderly patients.
To further simplify its operations, in late 2011 Mercy Health System also sold its 50% stake in the AmeriHealth Mercy Family of Companies (including AmeriHealth Mercy Health Plan and Keystone Mercy Health Plan)to its former joint venture partner, AmeriHealth (a unit of Independence Blue Cross) and a new investor, Blue Cross Blue Shield of Michigan. The deal, which came at a time of intensifying competition in the Pennsylvania Medicaid market, gave Mercy Health System some $170 million to help fund strategic initiatives that aim to transform its system into a more cost-effective and collaborative delivery model. The transaction also includes a series of charitable contributions over a period of five years.
To meet growing regional health needs, Mercy Health System has been working to expand its facilities in key service areas. For instance it opened a new physician clinic and began construction of a new cancer care center during 2011. The company also downsizes services where demand is low; for instance the Mercy Suburban Hospital stopped offering obstetric services in 2009.