"I commend the Tennessee region—leaders and staff," said John Starcher, CHP North Division President and CEO. "Transitions such as this can be challenging, emotionally and from a workload standpoint. In typical MHP-Tennessee style, while negotiations with Health Management have been conducted in a highly effective and expeditious manner, the day-to-day focus on high quality, cost-effective healthcare delivery continues to be a priority in every Mercy hospital and facility."

It was announced last November that MHP-Tennessee and CHP were looking to establish joint ventures or to sell the region’s facilities. While operationally strong, MHP-Tennessee requires an infusion of capital to reduce the operational impact of its debt load and to provide investment for future growth. In May, it was announced that HMA had been selected as the preferred purchaser of the region. HMA operates 60 hospitals in 15 states, with approximately 9,000 licensed beds and 8,000 physicians. It has a strong presence in the Southeast and Southwest.

HMA President and CEO Gary Newsome said, "Health Management is very pleased to have been chosen to continue Mercy Health Partners’ long-standing tradition of delivering quality health care to the growing needs of the Knoxville community and greater East Tennessee region. The Mercy system enjoys strong community support with an excellent medical staff and dedicated employees. Health Management intends to build upon this solid foundation to continue to enhance the quality of health care, increase the range of services available and improve access to needed medical services for East Tennessee. Our goal is to enable America’s best local health care."