The healthcare giant Health Management Associates has announced it will be purchasing the East Tennessee healthcare provider Mercy including its seven hospitals for an estimated price of $525 million.
In a release on its website, HMA made the announcement saying it had the blessing of Knoxville Bishop Stika.
"We at the Catholic Diocese of Knoxville look forward to welcoming Health Management Associates to our community," said Stika. "We are grateful that the system which began with a single hospital founded 81 years ago by the Sisters of Mercy to fulfill their mission here in our city will continue to exist."
The current version of Mercy was formed when the former Baptist and St. Mary's hospital systems merged in 2008.
According to the release, several authorities, including the Vatican, will have to approve the acquisition. The target date for closing is October 1, 2011.
HMA estimates an annual net revenue of $600 million for the Mercy system.