What is being announced?
We are pleased to announce Baylor Scott & White Health and Memorial Hermann Health System have signed a letter of intent to merge into a combined system.
What is the combined system intended to do?
The proposed combined system will seek to:
Strengthen our Communities
- Enhancing our ability to fulfill our similar century-long missions to meet the needs of all individuals, families
- Remaining vibrant, economic engines in more than 30 Texas counties, continuing and growing our commitment to our employed, independent and academic physicians and more than 73,000 employees statewide.
- Expanding strong academic affiliations to advance medical training and research.
- Furthering our ability to attract the very best talent to lead the health system of the future.
Advance the Health of Texans
- Increasing access to care that is safe, high quality and affordable.
- Growing our digital capabilities to successfully manage the health of populations, including those most vulnerable.
- Bending the unsustainable healthcare cost curve in the state.
Transform the Delivery of Care
- Accelerating our use of data and technology to rapidly develop innovative services, making high-reliability care more convenient, accessible and affordable.
- Growing our outpatient and digital care delivery capabilities coupled with key prevention and wellness programs to keep populations healthy and avoid unnecessary hospital visits.
- Meeting and exceeding changing care delivery expectations by furthering our commitment to consumer-centric care.
How will employees be impacted should the two systems combine?
- This letter of intent is creating no change for our employees at this time – it is business as usual.
- Our employees are our greatest assets and they support our respective organizations, which is why we are committed to continuing to focus on attracting and retaining best talent.
- Our proposed combined system will become an employer of choice through enhanced resources, industry-leading technologies, greater professional development and growth opportunities, and a best-in-class work experience.
How will employed, independent and academic physicians be impacted should the two systems combine?
We anticipate the proposed combined system to continue supporting our physicians whether employed, independent or academic, as we are committed to:
- Offering care models and practice options that focus on enhancing both the physician experience and the patient care provided.
- Growing physicians’ opportunities to share best practices with other nationally-renowned peers.
- Furthering relationships with employed, clinically-integrated and academic physicians to enhance patient care through physician engagement.
- Ensuring the proposed combined system becomes a global destination for physicians, known for the exceptional experience, support and opportunities provided.
How will coming together as proposed benefit patients and consumers in the communities we serve?
Foremost among the driving factors behind our proposal is our intent to focus our combined resources on:
- Increasing access to safe, high-quality, consumer-centric care;
- Enhancing coordination of care for patients across the state;
- Rapidly accelerating innovation; all leading to,
- Making healthcare services more convenient and affordable for all.
How will the proposed combined system be structured?
The proposed combined system will feature the following:
- Unified Board: A unified board will be comprised of an equal number of appointees from both organizations. Ross McKnight, the current chair of the Baylor Scott & White Holdings Board of Trustees, will serve as the first chair of the proposed combined system’s board. A vice chair, selected by the Memorial Hermann Health System Board of Directors, will be named prior to closing and will become chair at the end of McKnight’s two-year term.
- Leadership: Jim Hinton, CEO of Baylor Scott & White Health, will be the CEO of the proposed combined system and will be joined in the proposed Office of the CEO by Chuck Stokes, president and CEO of Memorial Hermann and Pete McCanna, president of Baylor Scott & White Health. Other members of the executive leadership team will be comprised of leaders from both Baylor Scott & White Health and Memorial Hermann.
- Operations: The proposed combined system will have executive and support staff based in Austin, Dallas, Houston and Temple.
- Name: The proposed combined system will have a new name to be determined before closing; however, Baylor Scott & White Health and Memorial Hermann will continue to operate under their strong, highly regarded brands in their respective service areas.
What are the next steps?
Nothing changes today for Baylor Scott & White Health or Memorial Hermann. Now that the letter of intent has been signed, we will immediately begin a period of due diligence. The next major step in the process will be the approval and signing of a definitive agreement which we hope to reach in 2019. We will now also embark upon the standard regulatory review processes.
How can we learn more and stay updated?
We are committed to being transparent and sharing as much information as we can. We will keep our employees, physicians, patients, members and communities updated throughout this process via this website.