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May 8, 2013

Mercy Hospital merger plan backed at public hearing

No opposition was voiced at Tuesday's public hearing in Portland on Eastern Maine Healthcare Systems' bid to add Mercy Hospital to its network.

The proposed merger of Brewer-based EMHS with Mercy Health System of Maine won federal approval in late February and is under review by the Maine Department of Health and Human Services' certificate of need division.

According to the Bangor Daily News, 13 people testified at the public hearing -- most of them with ties to one organization or the other -- in support of the proposed merger. Dr. William Demicco, president of Mercy's medical staff, said bluntly that the Portland-based hospital needs "an affiliation or partnership to continue."

As reported earlier, EMHS said it plans to invest at least $115 million in Mercy and would consolidate its State Street hospital's functions into Mercy's new Fore River campus. According to a merger application filed with the state, EMHS would also restructure $73 million of Mercy's debt.

The newspaper reported that Mercy would maintain its Catholic identity under the proposed merger agreement. DHHS's review process is expected to take six to nine months to complete. Public comments about the merger will be accepted through June 7.

The merger also needs approval from the Vatican, since Mercy is a Catholic hospital.

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