Two health systems––New Mexico-based Presbyterian Healthcare Services and Midwest-based health system UnityPoint Health––are joining forces to create a new healthcare organization.
Both organizations signed a letter of intent to merge in a deal where both would keep their brands and continue to deliver care locally. The two organizations would operate under one parent company, streamlining administrative efficiencies. Presbyterian Healthcare Services is a not-for-profit health system with eight hospitals in New Mexico, as well as its own health plan, Presbyterian Health Plan. UnityPoint Health, based in Des Moines, Iowa, is a network of hospitals, clinics and home care services in Iowa, Illinois and Wisconsin with more than 32,000 employees and 1,100 doctors and specialists.
Combined, the two organizations boast a workforce of 40,000, including nearly 3,000 physicians, as well as more than 40 hospital facilities, hundreds of clinics and significant health plan operations, according to a press release. Financial terms of the deal were not disclosed.
“As a not-for-profit health system, we must pave a sustainable path forward to continue serving our communities with care and coverage. While we’ve done that successfully independently, we know that partnering with like-minded health systems will allow us to accelerate our efforts,” Dale Maxwell, president and CEO of Presbyterian Healthcare Services, said in a statement. “UnityPoint Health shares in our commitment to keeping healthcare delivery local and creating a culture where the workforce thrives which will serve as foundational elements as we embark on this journey.”
The new parent company aims to invest in clinical excellence, digital innovation, workforce development and value-based care. The new healthcare organization will also see lower n clinical excellence, digital innovation, workforce development and value-based care while overall administrative costs as a result.
With the letter of intent signed, the two health systems will undergo a period of “evaluation and exploration of next steps towards a definitive agreement and regulatory approvals,” the press release stated.
“UnityPoint Health and Presbyterian are two organizations rooted in similar values,” said Clay Holderman, president and CEO of UnityPoint Health. “By lowering administrative costs, building new capabilities and increasing investments in innovation and clinical excellence, our intent is to help improve affordability and accessibility of care. We’re excited about the unique possibilities ahead.”
The deal comes a few years after a planned merger between UnityPoint Health and Sioux Falls, South Dakota-based Sanford was called off at the end of 2019. The deal would have made the combined company one of the largest health systems in the United States at a valuation of $11 billion.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."