Another healthcare system merger could be in the works.
New Mexico-based Presbyterian Healthcare Services and UnityPoint Health have signed a letter of intent to explore the formation of a new healthcare organization, UnityPoint officials announced Thursday, March 2.
The news came just one day after Davenport-based Genesis Health System revealed it had reached a merger agreement with the not-for-profit health system MercyOne. Genesis Health System, its affiliates and partners, offer a continuum of health care services for a 17-county region of Eastern Iowa and Western Illinois.
The partners said the deal will help patients, spur more health services, bring more resources to the community and help get and retain more healthcare professionals.
Thursday’s UnityPoint announcement could impact hospitals and clinics in Rock Island, Moline, Coal Valley, and Geneseo, Illinois, and Davenport, Bettendorf and Muscatine, Iowa.
The proposed new healthcare company would see both systems preserve their brand and continue delivering care locally while collectively achieving administrative efficiencies under a parent organization, according to a UnityPoint news release.
Presbyterian Healthcare Services is a private healthcare system and healthcare provider in New Mexico.
“As a not-for-profit health system, we must pave a sustainable path forward to continue serving our communities with care and coverage,” said Presbyterian Healthcare Services President & CEO Dale Maxwell. “While we’ve done that successfully independently, we know that partnering with like-minded health systems will allow us to accelerate our efforts.”
He added: “UnityPoint Health shares in our commitment to keeping healthcare delivery local and creating a culture where the workforce thrives which will serve as foundational elements as we embark on this journey.”
Combined, UnityPoint Health and Presbyterian would impact the lives of four million patients and members through more than 40 hospital facilities, hundreds of clinics and significant health plan operations.
The two organizations collectively represent a 40,000-strong workforce including nearly 3,000 physicians and advanced practice clinicians working alongside independent clinicians, educational partners and colleges.
The parties’ goals for exploring the creation of a new healthcare organization, which would function as a parent company for not-for-profit health systems, include making greater investments in clinical excellence, digital innovation, workforce development and value-based care while lowering overall administrative costs.
“UnityPoint Health and Presbyterian are two organizations rooted in similar values,” said Clay Holderman, president and CEO, UnityPoint Health. “By lowering administrative costs, building new capabilities and increasing investments in innovation and clinical excellence, our intent is to help improve affordability and accessibility of care. We’re excited about the unique possibilities ahead.”
Both systems will pursue a period of greater evaluation and exploration of next steps towards a definitive agreement and regulatory approvals.
