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.
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