Irving’s VHA announced Tuesday that it will merge with UHC, the Chicago-based alliance of nonprofit academic medical centers, to create the largest member-owned healthcare company in America with the highest purchasing volume.
VHA, the first hospital membership organization in the country, offers contracting services, analytics, consulting, and purchasing services to more than 5,000 hospitals throughout the country. UHC, meanwhile, offers similar services to 117 academic medical centers and more than 330 affiliated hospitals. After the merger, the pairing will count 30 percent of the nation’s hospitals as customers.
Its headquarters will be in Irving with a satellite office in Chicago. Financial details were not disclosed, but the merger is expected to close by the end of March.
VHA CEO Curt Nonomaque will head the merged company while UHC chief Irene Thompson will shift into “a leadership position focused on academic medical center networks.”
“VHA was founded on the idea that health care organizations perform better and faster when working together,” Nonomaque said in a statement. “This combined organization will have even greater ability to harness the power of healthcare’s brightest minds to provide targeted expertise to improve financial, operational, and clinical performance.”
The new pairing will provide services to all of U.S. News & World Report’s 10 best hospitals and reach more than 5,200 medical members throughout the country. Its purchasing volume will top $50 billion, making it the largest in the industry.
UHC and VHA have a history of collaboration. Novation, the Irving contracting services company, is a joint-venture. As is the direct contracting marketplace known as aptitude. VHA frequently finds itself on the best places to work in healthcare lists compiled by Becker’s Hospital Review and Modern Healthcare.
“UHC and VHA have each helped our members solve their toughest challenges through our innovative products and services,” said Irene Thompson, president and CEO of UHC. “With the combination of VHA and UHC, we are creating an enterprise that will be singularly dedicated to the success of academic medical centers, acute and non-acute community health care organizations by providing advanced resources, knowledge and solutions.”