Mergers and Acquisitions

Baylor Scott and White, Memorial Hermann “Discontinue Talks” of a Merger

Baylor Scott and White and Memorial Hermann health systems won’t be merging, according to a joint statement.

In the fall, Baylor Scott and White Health announced a potential merger with Houston-area system Memorial Hermann in what would have formed the largest health provider in the state, with 68 hospitals and 73,000 employees worth over $15 billion. The two providers would have formed a contiguous coverage area that would have spanned Houston, Dallas-Fort Worth, and Central Texas.

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.

But this move seems to go against the grain. We will update as we learn more. The full joint statement from the two systems is below.

“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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