Baylor Health Care System, Scott & White to Merge

For now, much of the hospitals' operations will remain separate including brands, foundations, and medical staff. However, Baylor and Scott & White will collaborate on medical education and research to attract physicians, research initiatives, and grants.

The next step is due diligence which will last well into next year. Until then, Baylor Scott & White Health will have two operating divisions: Baylor Health Care System and Scott & White Healthcare. The respective CEOS will remain in their same roles. The two operating divisions will eventually consolidate.

Allison says Baylor Scott & White Health will represent a new model of care for Texas and the nation.

"We are very excited about this opportunity. We think it's transformational as it relates to where healthcare is going. We want to be that model of what we believe will create value for the patients we serve," he said.