Baylor Health Care System and Scott & White Healthcare have signed a definitive agreement to merge. The transaction, which was announced in December 2012, is expected to close this year after regulatory review.
The agreement signals the end due diligence.
Current Baylor CEO Joel Allison said he doesn’t foresee any regulatory complications since the two hospitals do not overlap, but the companies will continue to review as they can “Never say never,” but he remains optimistic.
If everything goes as planned, the merged Baylor Scott & White will have a parent company, Baylor Scott & White Health, that will be based in Dallas and a service company, Baylor Scott & White Health Service, that will be based in Temple.
In the new setting, Joel Allison would become CEO of the new parent company and of the service company. Robert Pryor, M.D., president and CEO of Scott & White Healthcare, will serve as the president, COO, and CMO of the parent company and will be the president of the service company. Gary Brock, currently the COO of Baylor, will become president and COO of Baylor.
If approved, Baylor Scott & White Health would have nearly $8 billion in assets, a combined 43 hospitals, more than 500 patient care sites, more than 6,000 affiliated physicians, 34,000 employees, and the Scott & White Health Plan.
Allison said the goal is to provide more affordable healthcare to patients and combining best practices.