Texas hospital systems Memorial Hermann, Baylor Scott & White to merge
HOUSTON, TX (KLTV) - Memorial Hermann Health System and Baylor Scott & White Health announced plans to merge during a Monday press conference.
The two systems have signed “a letter of intent to merge into a combined system” according to statement posted on Memorial Hermann’s Twitter account.
The combined health system would be among the largest in the nation with annual revenue of more than $14 billion, the Wall Street Journal reports.
A new name has not been determined at this time.
“A new name for the combined system will be determined before closing, both Baylor Scott & White and Memorial Hermann will continue to operate under their strong, highly regarded names in their respective service areas,” said Deborah Cannon, Memorial Hermann Health Board Chair.
Cannon added that both organizations have 100 years of experience serving their communities.
“We believe we are forming a health system that will serve for the next 100 years," Cannon said.
Both companies are nonprofit organizations. Baylor Scott & White Health is based in Dallas while Memorial Hermann Health System is based in Houston.
The merger is expected to create a 68-hospital system, the WSJ reports.
See the full news release below.
DALLAS AND HOUSTON (October 01, 2018)
The boards of Baylor Scott & White Health and Memorial Hermann Health System have signed a letter of intent to merge into a combined system to further strengthen communities, advance the health of Texans and transform the delivery of healthcare.
As two of the most comprehensive not-for-profit health systems in Texas, Baylor Scott & White Health and Memorial Hermann, both founded as faith-based organizations, share similar missions and values. Equally important, they share like-minded, forward-thinking visions for the future. This proposed combined health system is positioned to become a national model for integrated, consumer-centric, cost-effective care.
“This is about two mission-driven organizations – both committed to making safe, high-quality healthcare more convenient and affordable – building something transformative together,” said Jim Hinton, CEO, Baylor Scott & White Health. “We must lead the change in our industry, while insisting we continue to fulfill our unwavering commitments to meeting the needs of all Texans.”
The health systems, both nationally recognized and dedicated to improving access and continuity of care, serve as vibrant, economic engines in more than 30 Texas counties, employing more than 73,000 across the state. Both have strong ties to the academic medical community, and together will be positioned to expand those affiliations to advance medical training and research programs, while continuing to attract and retain the very best talent.
“Together, we believe we will be able to accelerate our commitments to make care more consumer centric; grow our capabilities to manage the health of populations; and bend the unsustainable healthcare cost curve in the state,” said Chuck Stokes, president and CEO, Memorial Hermann. “Through this combined system, we have a unique opportunity to reinvent healthcare and make a profound difference in the lives of millions of Texans."
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