BJC Healthcare, St. Luke's Health System finalize merger agreement
The combined entity would boast about $10 billion in revenue from the 28 hospitals that would be brought together.
Photo: Franco Vogt/Getty Images
Two Missouri health systems, St. Louis-based BJC Healthcare and Kansas City-based St. Luke's Health System, have reached a definitive agreement to merge after satisfying regulatory reviews, the systems said.
The providers did not disclose the finances of the deal, but estimated that the combined entity would realize about $10 billion in revenue from the 28 hospitals joining together the merger.
Following an initial letter of intent in May, the health systems called the move "a definitive agreement to combine as an integrated, academic, and patient-centric Missouri-based health system." The deal would also integrate numerous clinics across Missouri, Kansas and Illinois.
WHAT'S THE IMPACT?
BJC HealthCare President and CEO Richard Liekweg will continue to serve as the CEO of the integrated health system, with Saint Luke CEO Melinda L. Estes set to retire by the end of the year.
Liekweg expressed confidence in the merger, saying in a statement that its due diligence review "has affirmed the vital opportunities we have to improve healthcare across the communities we serve. As an integrated health system, we will be unwavering in our commitment to provide extraordinary care to our communities."
The healthcare providers subject to the merger will retain their distinct brands after the integration, the health systems said. This is primarily to maintain continuity and familiarity for the patients and communities served by both systems.
Liekweg and Estes also emphasized the long-term potential the merger offers in terms of improving community health and establishing a new national standard for medical education and research.
THE LARGER TREND
BJC HealthCare is among the largest nonprofit healthcare organizations in the United States, delivering services to residents primarily in the greater St. Louis, southern Illinois and southeast Missouri regions.
BJC includes 14 hospitals. BJC's nationally recognized academic hospitals, Barnes-Jewish and St. Louis Children's hospitals, are affiliated with Washington University School of Medicine.
Saint Luke's Health System is a faith-based, nonprofit, aligned health system with more than 14 hospitals and campuses in Missouri and Kansas.
St. Luke's Health System of Idaho and its health plan recently partnered with TytoCare for virtual primary care at home.
In October, St. Luke's, based in Duluth, Minnesota, and Aspirus Health, based in Wausau, Wisconsin, took a step closer to merging by signing a definitive agreement to create a formal affiliation, which would result in a new 19-hospital health system.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
