Supply chain management company VHA on Tuesday said it will merge with UHC, creating a single healthcare services company that ranks it among the largest in the nation.
The financial terms were not disclosed.
The new organization, which has yet to be named, will provide services to close to 30 percent of U.S. hospitals, including nearly all academic medical centers and health systems it said in a statement.
The deal between VHA and Chicago-based UHC, an alliance of nonprofit academic medical centers, will close at the end of March.
The combined organization will be headquartered in Irving, Texas, with an office in Chicago.
The company will serve more than 5,200 health system members and affiliates and more than 118,000 non-acute healthcare customers, according to a statement.
The combined organization will offer in-depth clinical data and supply chain data to address cost and quality, serving independent, community-based health care organizations as well as large, integrated systems and academic medical centers.
VHA president and CEO Curt Nonomaque has been named president and CEO of the new company.
“VHA was founded on the idea that health care organizations perform better and faster when working together,” Nonomaque said in a statement.
Irene Thompson, president and CEO of UHC, has agreed to accept a leadership position focused on academic medical center networks during the transition.
VHA and UHC formed Novation in 1998, a joint-venture contracting services company of more than $50 billion in purchasing volume, according to companies.