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Massive Baylor Scott & White Merger With Houston’s Memorial Hermann Falls Through

The deal would've formed the largest health system in Texas, with 68 hospitals and 73,000 employees.

Dallas-based Baylor Scott & White Health and Houston’s Memorial Hermann Health System said Tuesday that they’re calling off their plan to merge, a deal that would’ve created the state’s largest healthcare provider.

The two sides announced their intention to combine on October 1. It would’ve tied together Baylor’s 49 hospitals with Memorial Hermann’s 19, forming a system of 73,000 employees. Will Maddox provides some more background at D CEO Healthcare:

Officials said that because there was no overlap in coverage areas, the merger wouldn’t have resulted in any job cuts, and that the scale of the new organization would allow for cost savings, though there is debate about whether such horizontal mergers save consumers. The leadership of the new system, whose name had not been announced, would have been shared by the top brass at each of the providers.

Mergers have been common practice in North Texas for the last several years, as the Baylor was just a few years away from merging with Scott and White. Meanwhile, Texas Health Resources joined forces with UT Southwestern and the Methodist system aligned with Mayo Clinic.

And here’s the full statement from the two sides:

“After months of thoughtful exploration, we have decided to discontinue talks of a merger between our two systems. Ultimately, we have concluded that as strong, successful organizations, we are capable of achieving our visions for the future without merging at this time. We have a tremendous amount of respect for each other and remain committed to strengthening our communities, advancing the health of Texans and transforming the delivery of care. We will continue to seek opportunities for collaboration as two forward-thinking, mission-driven organizations.”

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