Baylor, Scott & White Health, Memorial Hermann Health System announce merger 

Baylor, Scott & White Health and Memorial Hermann Health System announced merger plans. (Baylor Scott & White)

In the latest provider megamerger, Texas-based Baylor, Scott & White Health and Memorial Hermann Health System announced they have signed a letter of intent to combine into a statewide system. 

The two health systems operate 68 hospital campuses and more than 1,100 sites of care across 30 Texas counties, accounting for more than 10 million patient encounters each year and more than $14 billion in combined revenue. The deal involves more than 14,000 employed and independent physicians and two health plans. 

Should the deal go through, the combined system would be one of the largest in the country. 

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“This is about two mission-driven organizations—both committed to making safe, high-quality healthcare more convenient and affordable—building something transformative together,” Jim Hinton, CEO of Baylor, Scott & White, said in a statement (PDF). 

“We must lead the charge in our industry while insisting we continue to fulfill our unwavering commitments to meeting the needs of all Texans,” Hinton added. 

RELATED: Baylor, Scott & White takes a population health-based approach to reduce ER, inpatient visits 

Both health systems were founded as faith-based systems and combined provided $1.3 billion in community benefits last year. 

The letter lays out several of the systems’ plans for their combined future, should the merger clear regulatory scrutiny. The joint system does not have a final name planned, but Baylor, Scott & White and Memorial Hermann intend to continue to use their current brands in their existing markets. 

The combined system would operate under a unified board of directors, with Hinton taking over as CEO. Chuck Stokes, CEO of Memorial Hermann, will also take on a role in the CEO’s office, with other executive positions to be filled by a mix of employees from both systems. 

Current Baylor, Scott & White Board Chair Ross McKnight would serve as the unified board’s chair, with the vice chair position to be filled by Memorial Hermann. That person, which the health system will name shortly before closing, would take over for McKnight after two years. 

RELATED: How Memorial Hermann Health System, Virginia Mason Health System built cultures of safety 

The combined executive teams would be based out of major markets in Austin, Houston and Temple, the health systems said. 

“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,” Stokes said. 

“Through this combined system, we have a unique opportunity to reinvent healthcare and make a profound difference in the lives of millions of Texans,” he said. 

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