The two systems announced they were in exclusive merger talks in April, and they have now filed a letter of intent with the Tennessee Department of Health, indicating the organizations will submit an application for a Certificate of Public Advantage this fall. The systems have also submitted a similar intent to request approval with the Southwest Virginia Health Authority.
Wellmont and Mountain States plan to come together to create a new health system with a new name.
“The underlying purpose for the proposed merger is to reduce the growth in healthcare costs, improve the health of our region and invest in the growth of our economy,” said Mountain States President and CEO Alan Levine.
The two systems will now work toward finalizing a definitive agreement.
More articles on healthcare industry transactions:
Piedmont Healthcare, Newton Medical Center partnership gets go-ahead from attorney general
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2 Georgia health systems announce massive merger plans: 5 things to know
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