One of the largest healthcare providers in Massachusetts is looking to grow even further.
Baystate Health, which operates hospitals and care centers across western Mass., says it is looking to acquire Mercy Medical Center in Springfield.
Mercy’s current operators say they have agreed to the move, citing ongoing issues the hospital has been facing.
Trinity Health of New England, Mercy’s current operator, says both they and Baystate Health have signed a “definitive agreement” to “transition” the 182-bed acute care hospital to Baystate’s ownership, along with other assets.
According to a Trinity Health webpage detailing the arrangement, the transition will be “effective on November 1, 2026,” pending regulatory approval.
It’s all a move that’s reportedly been in the works for at least the better part of a year. The Springfield Republican newspaper reported in July that acquisition talks were underway.
In December, when asked about acquisitions, Baystate CEO Peter Banko told reporters any such talks were under lock-and-key.
He said as much after a forum focused on financial pressures hospitals across the country were facing due to upcoming Medicaid changes and cuts.
The CEO emphasized that, due to the “One Big, Beautiful Bill Act,” Baystate Health could lose as much as $147 million annually, with the healthcare network likely to see a steep increase in uninsured patients and reductions to healthcare subsidies.
The forum also featured Banko pointing out that, in order for some hospitals to weather the coming changes, acquisitions would likely be part of the solution
“You’re going to see mergers, acquisitions,” he said during the event put on in-part by Massachusetts Congressman Richard Neal of the 1st district. “People are going to have to [achieve] scale in the market to survive… at a $3.5 billion size, we're probably not quite there from a scale-perspective, so we're going to have to pursue unique partnerships and other things.”
Enter Mercy Medical Center, a hospital founded over 150 years ago by the Sisters of Providence as a “House of Mercy,” initially. Later becoming Mercy Hospital and then Mercy Medical Center, the facility grew in size and scope off of Carew Street.
Adding multiple departments and care centers over the years, the Catholic-centered hospital eventually became part of Trinity Health of New England in 2015, entering a network that, today, includes about 90 hospitals across the country.
Mercy has also reportedly struggled to remain financially viable in the long-term, Trinity Health said in its statement Tuesday. Reports of worker dissatisfaction, rising costs and declining payment rates have all dogged the hospital in recent years.
Springfield Mayor Domenic Sarno tells WAMC that, at the rate things were going, it wasn’t clear how long the hospital off of I-291 might stay open.
“If these moves were not made, there was a distinct possibility that Mercy would have just shut down, and I wasn't going to accept that,” he said in a phone interview, crediting Baystate, state and local officials with paving the way for the deal. “I'm glad that we all worked together to keep two top-notch hospitals in Springfield and the surrounding areas … that's what our city and the area deserves, and we'll move forward from there.”
Sarno also credited Mercy with serving Springfield for as long as it has, whether it's been through its emergency room, rehabilitation services or the Sister Caritas Cancer Center, where the mayor initially received cancer treatments himself last year.
Two miles away, Baystate Health already operates one of the largest hospitals in the state, Baystate Medical Center, which offers roughly four times as many beds. Baystate’s own network includes smaller hospitals and care centers across the Pioneer Valley, all adding up to about 13,000 staff members.
In recent years, though, Baystate has also been paring back its numbers, trimming several hundred administrative and corporate roles over the last two years as part of a “focused transformation” plan.
It also sold much of its outreach laboratory facilities in 2024. A year before that, it closed its Mary Lane Outpatient Center in Ware, shifting its services to Baystate Wing Hospital in Palmer nearby.
Some local officials, like Springfield State Representative Carlos Gonzalez, have expressed concern over the latest move. He tells WAMC that he hopes to meet with Baystate’s leadership to discuss Mercy’s future further.
“The announcement of the acquisition raises significant concerns regarding the future of our healthcare landscape,” he said in a statement. “It is vital that we ensure the continued operation of both hospitals in Springfield. Protecting our dedicated workers and staff is essential, as is guaranteeing that our community retains access to critical medical services.”
Adding to that Tuesday was the Massachusetts Nurses Association, which represents staff in both healthcare systems.
“Mercy Medical Center is a vital, full-service hospital serving an underserved population. If there is a transition in ownership to Baystate Health, it is critical that both hospital owners and government leaders ensure all services at Mercy are maintained or expanded to ensure patients continue to receive the care they need,” part of the MNA's statement read
Also weighing in on the announcement was Congressman Neal, who said he was “pleased” with the outcome, arguing the acquisition will expand healthcare access in the face of uncertainties created by the One Big Beautiful Bill Act.
“Together, these institutions represent more than three centuries of service to western and central Massachusetts,” Neal stated. “Ensuring their viability and continued success is vital to the health of our families and our local economies, and this announcement represents a critical step in strengthening our regional health care system for generations to come.”
In their joint statement, both healthcare systems noted Baystate Medical Center and Mercy Medical Center will continue to operate independently as regulators go over the proposed transition.
On its website, Trinity Health notes Baystate is effectively absorbing all of Mercy's healthcare centers, physical therapy and maternity facilities and other offices.
Trinity also says it will continue to own and operate Brightside for Families and Children as well as Mercy LIFE, the Beaven Kelly Home and Saint Luke's Home.
More information can be found here.
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The full statement provided by the Massachusetts Nurses Association can be found below:
“Mercy Medical Center is a vital, full-service hospital serving an underserved population. If there is a transition in ownership to Baystate Health, it is critical that both hospital owners and government leaders ensure all services at Mercy are maintained or expanded to ensure patients continue to receive the care they need.
"This potential sale comes as Baystate’s Board of Trustees has expressed confidence that the system is improving its financial trajectory. MNA nurses across the region urge Baystate executives to translate that financial progress into meaningful investments in nurses and safe patient care. Baystate must settle a fair MNA contract with Baystate Franklin Medical Center nurses and respect nurses at MNA-represented Noble Hospital.
We look forward to growing union density within the Baystate system, raising workplace standards, and contributing to the health and economic prosperity of all communities served by Baystate.
“Mercy is a vital component of the region’s public health infrastructure. Up to this point, the sale conversations have happened behind closed doors between corporations. It is incumbent on the Healey Administration to incorporate all stakeholders into the change of ownership process, to set clear and accountable parameters, and to implement a robust scrutiny and enforcement mechanism to ensure the continued operation of this safety net hospital.
"MNA nurses and healthcare professionals at Baystate, Mercy and beyond are committed to working with affected community members to ensure that patient care quality and access are protected throughout this process. We urge Baystate to take advantage of this opportunity to invest in local nurses and the future of high-quality, community-based care."
