The Sisters of Mercy plan to sell their surgical business at Mercy Hospital in Epsom to the private Ascot Hospital.
The transaction, subject to Commerce Commission approval, was announced by the nuns yesterday.
The nuns have owned and operated Mercy Hospital at Mountain Rd for the past 100 years,during which it has grown into one of the leading private healthcare facilities.
They will keep ownership of the hospital building, and plan to refocus their healthcare interests to concentrate on community-based and aged care. That includes their operation of the St Joseph's Mercy Hospice on the hospital site.
Mercy Sisters spokeswoman Sister Katrina Fabish said the cooperative relationship with Ascot would allow the values and heritage of Mercy services to continue.
Sister Katrina said the sale proceeds, which were confidential, would allow the sisters to continue and expand their community work.
"We were in a situation of changing our focus ... our sisters no longer work at the hospital."
She said surgical high technology care was not where the Mercy Sisters wanted to keep heading.
The new hospital entity will run under the MercyAscot name, as will the Ascot Hospital at Greenlane, and combine the resources of both.