BAYLOR SCOTT AND WHITE, MEMORIAL HERMANN ANNOUNCE INTENT TO COMBINE

  

The Baylor Scott and White and Memorial Hermann Health Systems have announced plans to merge into one system.

On Monday, the boards of the two health systems signed a letter of intent to combine with one another, effectively creating the largest health care system in the state of Texas.

The two faith-based organizations say they share a vision for the future, and that this combined system could become a national model for health care.

CEO of Baylor Scott and White Health Jim Hinton said this merger is about two organizations that are driven to build something transformative, in order to bring high-quality healthcare to more people.

President and CEO of Memorial Hermann Chuck Stokes said this combined system has the opportunity to reinvent healthcare for millions of Texans.

Each of the health systems together will include 68 hospitals, over 1,100 care delivery sites, and nearly 14,000 employed, independent and academic physicians, along with two health plans.  Currently, the systems serve in more than 30 counties, with more than 73,000 employed across the state.

Some of the details of the letter of intent include:

• Unified Board: A unified board will be comprised of an equal number of appointees from both organizations.  Ross McKnight, the current chair of the Baylor Scott & White Holdings Board of Trustees, will serve as the first chair of the proposed combined system’s board.  A vice chair, selected by the Memorial Hermann Health System Board of Directors, will be named prior to closing and will become chair at the end of McKnight’s two-year term.

• Leadership: Jim Hinton, CEO of Baylor Scott & White Health, will be the CEO of the proposed combined system and will be joined in the proposed Office of the CEO by Chuck Stokes, president and CEO of Memorial Hermann and Pete McCanna, president of Baylor Scott & White Health.  Other members of the executive leadership team will be comprised of leaders from both Baylor Scott & White Health and Memorial Hermann.

• Operations: The proposed combined system will have executive and support staff based in Austin, Dallas, Houston and Temple.

• Name: The proposed combined system will have a new name to be determined before closing; however, Baylor Scott & White Health and Memorial Hermann will continue to operate under their strong, highly regarded brands in their respective service areas.

With approval of the letter of intent, the two organizations will enter into a period of exclusive negotiations and standard review processes.  The next stage in the transaction, a definitive agreement, is expected to be complete in 2019.

For more information, visit www.TransformingHealthTogether.com.