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A possible merger between two hospital giants in Texas is one of the latest signs of consolidation that is redefining the health care sector.
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Two hospital giants in Texas announced merger talks that would combine leading hospital systems with two of the country's largest metropolitan markets, one of the latest signs of health sector consolidation.
Baylor Scott & White Health, a non-profit organization based in Dallas, and Houston-based Memorial Hermann Health System, have announced a letter of intent to create a system of 68 hospitals ranging from the Gulf of Mexico on the border with Oklahoma.
The combination would be among the largest US systems, in number of hospitals, with annual revenues of more than $ 14 billion.
With this size, it is possible to increase efficiency and realize savings that can be invested to meet market demand for less expensive and more convenient care, depending on the hospital systems.
"The way is to create economies of scale," said Jim Hinton, managing director of Baylor Scott & White. "The most important goal is to improve care and invest in digital and ambulatory care."
Hinton would be named CEO following the merger, which could end in July.
Write to Melanie Evans at [email protected]
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