Too Many Mercy Liabilities Kill Merger Plan

The negotiation between UT Medical Center and Mercy Health System over a possible merger broke down, effectively ending Mercy's hope of continuing as it is presently constituted. The merger talks ended primarily because once UT got a look at St. Mary's liabilities, the hospital feared it would be taking on too much debt and threaten its own future.

Mercy has put all or parts of the medical care organization up for sale. Despite the success of St. Mary's and the new St. Mary's North, Mercy is still saddled with the old Baptist Hospital on a downtown riverbank and a West Knox County campus being battered in head-up competition with Covenant Health's Fort Sanders West.