UnityPoint Health moves to acquire MercyOne hospital in Iowa
Under the deal, UnityPoint would add Siouxland Medical Center into its footprint. The hospital has more than 400 beds and is the only level II trauma center in western Iowa.
UnityPoint Health already commands a substantial footprint in Iowa, but the health system is looking to add a sizable hospital to its portfolio.
UnityPoint Health has reached a tentative deal to acquire MercyOne Siouxland Medical Center, based in Sioux City, Iowa. The organizations hope to complete the deal this summer.
UnityPoint has reached a letter of intent to acquire MercyOne Siouxland Medical Center, based in Sioux City, Iowa. The two systems announced the deal late last week. MercyOne is part of Trinity Health, a nonprofit Catholic system operating more than 90 hospitals.
The Siouxland Medical Center offers 464 licensed beds and is the only Level II trauma center in western Iowa. In addition to the main hospital in Sioux City, UnityPoint would also acquire the medical center’s physician practices, specialty care clinics and home care services.
The organizations said that they expect the deal to be finalized this summer.
Scott Kizer, president and CEO of UnityPoint Health, said that the system is always examining “opportunities to strengthen local healthcare in the communities we serve.”
“We believe that local, community-led, not-for-profit healthcare is best for our Sioux City community, and that this acquisition will help support that mission,” Kizer said in a statement.
Bob Ritz, CEO of MercyOne, also cast the deal as a step to ensure top-notch care for the Sioux City region.
“We strongly believe the best way to maintain access to care in Sioux City, to become sustainable long-term and to ensure a smooth transition for patients and employees is for UnityPoint Health to acquire MercyOne Siouxland Medical Center,” Ritz said in a statement. “This decision supports our commitment to being a compassionate and healing presence in our communities.”
Based in West Des Moines, Iowa, UnityPoint operates 17 hospitals and nearly 400 clinics across Iowa, western Illinois and southern Wisconsin. The health system is concentrated in Iowa but has added properties outside the state in recent years.
In 2023, UnityPoint sold three of its hospitals in central Illinois to Carle Health, based in Urbana. In most of its markets, UnityPoint is the dominant healthcare player in the region, Fitch Ratings says.
UnityPoint has a solid mix of payors, and Medicaid and self-pay patients account for less than a fifth of its revenue, according to a September 2024 report from Fitch.
Iowa has strong employment and its incomes and share of residents with health insurance are better than the national average, though the state isn’t seeing much population growth. UnityPoint has a “AA-” rating and a stable outlook from Fitch.
In 2023, UnityPoint explored a merger with Presbyterian Healthcare Services in a deal that would have created a system with $11 billion in revenue, but the merger plans were dropped.
Hospital merger activity slowed in the first quarter of the year, and analysts say some health systems may be more cautious about pursuing deals with uncertainty about the economy and looming cuts in federal aid.
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