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Baylor Health Care, Scott & White Healthcare to Join, Create New Health System

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During a Dec. 14 press conference, Dallas-based Baylor Health Care System and Scott & White Healthcare in Temple, Texas, announced the signing of an agreement of intent to combine their health systems.

During the press conference, Jim Turner, chair of the Baylor Health Care System board, revealed that the two organizations have been discussing a potential alliance for more than a year as a way to meet the demands of an industry undergoing great transformation.

According to the release, the new system will be named Baylor Scott & White Health and governed by a single board with equal representation from both systems. This partnership combines 42 hospitals, more than 350 patient care sites, more than 4,000 active physicians, 34,000 employees and the Scott & White Health Plan. According to the release, it would be the largest non-profit health system in Texas and one of the largest in the United States.

Here are a few details of the agreement:

• Baylor Scott & White Health will have a unified board of trustees comprised of 14 individuals with an equal number of representatives from each institution. According to the release, Drayton McLane Jr., the chair of the Scott & White board of trustees, will serve as chair of the new organization's board, and Mr. Turner will serve as chair-elect.

• The new organization is to be led by a single executive leadership team. Joel Allison, president and CEO of Baylor Health Care, will serve as CEO and Robert Pryor, current president and CEO of Scott & White, will serve as president and COO of the new organization.

• Baylor Scott & White Health will have two operating divisions, which will consolidate over time. The Scott & White division will be headquartered in Temple, and the Baylor division will be headquartered in Dallas, according to the release.

• Despite the new organization name, both Baylor and Scott &White will retain their individual brand names.

• The foundations and medical staffs will remain separate and independent.

Baylor and Scott & White will now enter exclusive negotiations in order to reach a definitive agreement. The transaction is anticipated to be completed in 2013, according to the release.

More Articles on Hospital Mergers:

Sinai Health System, Holy Cross Hospital Partnership Moves Forward Following Vatican Approval
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HealthPartners, Park Nicollet Health Services Merger Clears Antitrust Review

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