A new merger between Steward Health Care and IASIS Healthcare LLC will make the Boston-based physician-led organization the largest private for-profit hospital operation in the country.
The deal with the Tennessee hospital system means Steward will have 36 hospitals across 10 states, managed care operations in Arizona, Utah and Massachusetts, and projected revenues of almost $8 billion in 2018.
Steward announced the merger this morning and said it expects to seal the deal in the third quarter of 2017. Terms of the transaction were not disclosed.
The organization already operates 18 hospitals and employs more than 1,300 multi-specialty physicians throughout Massachusetts, Ohio, Florida and Pennsylvania. IASIS operates 17 hospitals and one behavioral health hospital in locations across Utah, Arizona, Colorado, Texas, Arkansas and Louisiana.
The merger will result in Steward operating nearly 7,500 patient beds across 10 states with approximately 38,000 employees, including more than 1,800 directly employed multi-specialty physicians and several thousand aligned physicians.
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“Our physician-driven accountable care model focused on keeping patients healthy is transforming the healthcare industry as this transaction demonstrates,” said Ralph de la Torre, M.D., chairman and CEO of Steward Health Care, in the announcement. “Our model shows how the industry can successfully shift toward a more cost-effective local, coordinated approach that puts patients first.”
W. Carl Whitmer, president and chief executive of IASIS, said the merger deal with Steward means IASIS will further its mission to deliver high-quality, cost-effective healthcare to its patients and the communities. He said he expects “it will be business as usual while all of us work toward a seamless merger of our operations.”
As part of the deal, IASIS Healthcare’s 18 hospitals will merge under Steward Health Care, including:
- Mountain Vista Medical Center in Mesa
- St. Luke’s Behavioral Health Center in Phoenix
- St. Luke’s Medical Center in Phoenix
- Tempe St. Luke’s Hospital in Tempe
- Wadley Regional Medical Center at Hope
- Pikes Peak Regional Hospital in Woodland Park
- Glenwood Regional Medical Center in West Monroe
- The Medical Center of Southeast Texas in Port Arthur
- The Medical Center of Southeast Texas – Victory Campus (Beaumont)
- Odessa Regional Medical Center
- Southwest General Hospital in San Antonio
- St. Joseph Medical Center in Houston
- Wadley Regional Medical Center in Texarkana
- Davis Hospital and Medical Center in Layton
- Jordan Valley Medical Center in West Jordan
- Jordan Valley Medical Center West Valley Campus
- Mountain Point Medical Center in Lehi
- Salt Lake Regional Medical Center