UPDATE: Last Catholic hospital in Phoenix NOT stripped of its status

 Earlier reports were incorrect.

UPDATE: The diocese today released a statement:

Contrary to reports in the media, Mercy Gilbert Medical Center has not been stripped of its Catholic status. The hospital is in the process of renewing its status and ensuring its compliance with the Ethical and Religious Directives for Catholic Health Care Services. This renewal process was necessary following the corporate reorganization of its parent company in January.

Thursday, the diocese published the following online:

On January 23, 2012, the parent company of Mercy Gilbert Hospital was reorganized from being a Catholic corporation (Catholic Healthcare West) to being a secular one (Dignity Health). In light of this change, Mercy Gilbert was asked by Bishop Olmsted to renew their official recognition as a Catholic institution in the Diocese of Phoenix.

While discussion has been ongoing, to this point Mercy Gilbert has not yet fulfilled the criteria for this renewal. Thus, Bishop Olmsted has a duty to the Catholic faithful to inform them that he cannot state with moral certitude that Mercy Gilbert Hospital provides Catholic health care which is in full conformity with the teaching of the Church. It is, however, his hope that Mercy Gilbert will successfully complete the renewal process, at which time Bishop Olmsted will grant his recognition of their Catholic identity.