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Steward Health Care and IASIS Healthcare have entered into a definitive agreement to merge their operations.
According to the company, the transaction will make Steward the largest private for-profit hospital operator in the United States with 36 hospitals across ten states, managed care operations in Arizona, Utah and Massachusetts, and projected revenues of almost $8 billion in 2018, the first year of consolidated operations.
The deal is expected to close in the third calendar quarter of 2017, subject to customary regulatory approvals, terms and conditions.
The merger will also bring the total number of covered lives within Steward's managed care and health insurance products to more than 1.1 million, the company said.
"Our physician-driven accountable care model focused on keeping patients healthy is transforming the healthcare industry as this transaction demonstrates," said Dr. Ralph de la Torre, chairman and CEO of Steward Health Care. "Our model shows how the industry can successfully shift toward a more cost-effective local, coordinated approach that puts patients first."
W. Carl Whitmer, president and chief executive of IASIS, said: "Since its formation nearly 20 years ago, IASIS's mission has been to deliver high-quality, cost-effective healthcare to our patients and the communities we serve. We have accomplished this goal by investing in our growing hospitals and talented employees and by providing a broad and differentiated set of capabilities and assets to our high-growth, community-focused urban and suburban hospital markets. Steward's innovative approach to reducing healthcare cost and improving quality of service will further this mission. It will be business as usual while all of us work toward a seamless merger of our operations."
Steward Health Care, IASIS Healthcare, Merger, M&A, US