Munson Healthcare has announced plans to purchase Mercy Hospital Cadillac and Mercy Hospital Grayling.

In a statement released by Munson Healthcare today, the regional health care system says it has signed a non-binding letter of intent with CHE Trinity Health, the current owner of the hospitals, to take over the facilities. Both hospitals have been managed by Munson Healthcare for the past 11 years and affiliated for 15 years. Under this agreement they will join Munson Medical Center and Paul Oliver Memorial Hospital as owned affiliates.

"As the next practical step in our partnership, we have signed this agreement to ensure we can continue to meet the health care needs of the people of Cadillac and Grayling long into the future," said Munson Healthcare president and CEO Ed Ness in announcing the planned purchase.

One efficiency highlighted in the deal is the elimination of some of the administrative complexity that resulted from being owned by one system and managed by another.

Next steps include both hospitals and health systems working together on due diligence and seeking government and corporate approvals. Informational meetings with community members also are planned.

The agreement also includes the purchase of the Mercy Manor long-term care facility in Grayling and the affiliated Mercy Home Care and Hospice services in Cadillac, Grayling and Houghton Lake.