A potential mega-merger that would have formed the biggest nonprofit health system in Texas is off, officials from the systems confirmed Tuesday. No reason was given. According to a statement issued, the systems will still seek opportunities for collaboration.
The deal was reportedly worth $14 billion and would have formed the largest nonprofit health system in Texas, with reach into 30 counties. The two systems include 68 hospital campuses, more than 1,100 care delivery sites, nearly 14,000 employed, independent and academic physicians and two health plans with nearly 10 million patient encounters annually recorded.
Both systems will now chart new courses for their individual growth and future.
Merger and acquisition activity hit a record high in 2018. The volume of deals went up more than 14 percent in 2018 over 2017, with 1,182 totals mergers and acquisition transactions.
Though the volume of deals was high, the actual value of deals dropped roughly 31 percent from 2017's figures, with the overall 2018 total at $121.5 billion.
While this mega-merger didn't come to fruition, another has. Catholic Health Initiatives and Dignity Health have officially merged, forming the new nonprofit Catholic health system CommonSpirit Health. The $29 billion system now operates more than 700 care sites and 142 hospitals, as well as research programs, virtual care services, home health programs and other services.
Catholic Health Initiatives CEO Kevin E. Lofton and Dignity Health President and CEO Lloyd H. Dean will both serve as CEOs for the new health system.
ON THE RECORD
"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," the systems said in a joint statement.
"We didn't combine our ministries to get bigger, we came together to provide better care for more people. We created CommonSpirit Health because in order to solve national health challenges, we need the breadth, scope, and resources to make a nationwide impact. We believe that no one should ever have to choose between being healthy and putting food on the table," Dean said about the CHI/Dignity merger.
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