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Memorial Hermann and Baylor Scott & White Health unite to create largest health system in Texas

Memorial Hermann merger to create largest health system in Texas

Memorial Hermann exterior
Houston-based Memorial Hermann could soon be part of the largest healthcare network in Texas.  Photo via memorialhermann.org

Houston-based Memorial Hermann Health System is making a move that could change the lives of Texans.

The healthcare system plans to merge with Baylor Scott & White. Memorial Hermann representatives believe the partnership "will strengthen our community, advance the health of all Texans and transform the delivery of healthcare."

The proposed combined health system is positioned to become a national model for integrated, consumer-centric, cost-effective care, according to a statement.

"This is about two mission-driven organizations — both committed to making safe, high-quality healthcare more convenient and affordable —building something transformative together," says Jim Hinton, CEO of 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."

"Together, we believe we will be able to accelerate our commitments to make care more consumer-centric, grow our capabilities to manage the health populations, and bend the unsustainable healthcare cost curve in the state," says Chuck Stokes, president and CEO of Memorial Hermann.

One of the largest not-for-profit health systems in Southeast Texas, Memorial Hermann operates 19 hospitals and specialty programs and services in the Greater Houston area. (Memorial Hermann-Texas Medical Center is known as one of the nation's busiest Level I trauma centers, boasting the world-class Life Flight trauma rescue system.) Baylor Scott & White operates 49 hospitals and more than 1,000 access points including flagship academic medical centers in Dallas and Temple.

With approval of the letter of intent, the two organizations have entered into a period of exclusive negotiations, due diligence, and the standard regulatory review processes. The merger must be approved by the attorney general and the Federal Trade Commission, according to Deborah Cannon, chair of the Memorial Hermann Health System.

"We expect to complete due diligence in 2019, with formation of the new company mid-year," she adds. Cannon notes that when complete, the new system will "serve the people of Texas for the next 100 years."

Together, the health systems serve in more than 30 Texas counties, employing more than 73,000 people across the state. Both entities plan to advance medical training and research programs.

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