The two health systems say they hope to have a definitive agreement finalized by year's end, and to close the deal in early 2022, pending regulatory approval.
Nonprofits Intermountain Healthcare and SCL Health announced Thursday that they have signed a letter of intent to merge and create a 33-hospital health system serving six states.
Under the deal, the consolidated health system will keep the Intermountain Healthcare brand. SCL Health's seven Catholic hospitals and one secular hospital will keep their names and continue to operate under existing religious guidelines.
The two health systems say they hope to have a definitive agreement finalized by year's end, and to close the deal in early 2022, pending regulatory approval.
Salt Lake City-based Intermountain operates 25 secular hospitals, 225 clinics, employs 42,000 people, and includes a medical group, SelectHealth insurance company, and other services in Utah, Idaho, and Nevada.
The consolidated health system would employ more than 58,000 people, with 386 clinics in Utah, Idaho, Nevada, Colorado, Montana, and Kansas, and would provide health insurance to about 1 million people.
Intermountain and SCL Health say they now provide services in adjacent regions with no geographic overlap.
"American healthcare needs to accelerate the evolution toward population health and value, and this merger will swiftly advance that cause across a broader geography," said Marc Harrison, MD, president and CEO of Intermountain. "We'll bring together the best practices of both organizations to do even more to enhance clinical excellence, transform the patient experience, and support healthy lives."
Lydia Jumonville, president and CEO of SCL Health, said the two health systems are negotiating the merger "from positions of strength."
"We are two individually strong health systems that are seeking to increase care quality, accessibility, and affordability. We will advance our missions and better serve the entire region together," she said.
The consolidated system will be headquartered in Salt Lake City, with a regional office in Broomfield. Harrison will be president and CEO of the merged organization. Jumonville will keep her job during a two-year transition and become a member of a new combined board.
“SCL Health and Intermountain are pursuing our merger from positions of strength.”
Lydia Jumonville, president / CEO SCL Health
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
The consolidated health system will keep the Intermountain Healthcare brand. SCL Health's eight hospital will keep their names and continue to operate under existing religious guidelines.
Salt Lake City-based Intermountain operates 25 secular hospitals, 225 clinics, employs 42,000 people, and includes a medical group, SelectHealth insurance company, and other services in Utah, Idaho, and Nevada.
The consolidated health system would employ more than 58,000 people, with 386 clinics in Utah, Idaho, Nevada, Colorado, Montana, and Kansas, and would provide health insurance to about 1 million people.
The consolidated system will be headquartered in Salt Lake City, with a regional office in Broomfield, Colorado.
Intermountain CEO Marc Harrison, MD, will be president and CEO of the merged organization. SCL CEO Lydia Jumonville will keep her job during a two-year transition and become a member of a new combined board.