UnityPoint Health, a healthcare system based in Iowa, and Presbyterian Health Services, a healthcare system based in New Mexico, announced their plan to merge and create a new entity called UniteHealth. The merger would create the 14th largest nonprofit health system in the United States with 94 hospitals and over $17 billion in operating revenue.
The merger is expected to be completed by the end of the year, pending regulatory approvals. The combined organization will serve patients in Iowa, Illinois, Wisconsin, New Mexico, and Texas. UniteHealth will be headquartered in Iowa.
The two healthcare systems have worked together in the past and have similar missions and cultures. The merger will allow them to share best practices, resources, and technology and to better serve their communities.
“By joining forces, we will increase our scale, enhance our clinical capabilities, improve our purchasing power, and leverage our collective resources to provide the highest quality of care to our patients and communities,” said Kevin Vermeer, president and CEO of UnityPoint Health.
The two healthcare systems will retain their existing brands and leadership teams, and the board of directors of UniteHealth will include representatives from both organizations.
“This partnership is an exciting opportunity for our two organizations to come together to deliver high-quality, patient-centered care to more communities across the country,” said Dale Maxwell, president and CEO of Presbyterian Health Services.
The merger is part of a trend of consolidation in the healthcare industry as organizations seek to improve efficiency and reduce costs. Mergers and acquisitions also allow healthcare systems to expand their reach and increase their bargaining power with insurers and suppliers.
