Charlotte, N.C.-based Carolinas HealthCare System signed a letter of intent to merge with Chapel Hill, N.C.-based UNC Health Care, forming one of the nation's largest hospital chains.
Under the letter of intent, the two organizations will join their clinical, medical education and research resources to improve access to care and educational opportunities in North Carolina. Together, the two entities would run more than 50 hospitals and employ more than 90,000 people. The new system would have more negotiating power with insurance companies and more capital to eventually construct new hospitals, according to the Charlotte Observer.
They will begin exclusive negotiations with a goal of entering into a final agreement within 180 days. Additionally, the two organizations hope to receive regulatory approval from the Federal Trade Commission next year, according to the report.
"Together with UNC Health Care, we believe that the opportunities to be a national model and to elevate health in North Carolina are nearly limitless," said Gene Woods, current president and CEO of Carolinas HealthCare System, and future CEO of the new organization.
William Roper, MD, UNC Health Care's CEO and medical school dean, will serve as the executive chair of the new organization.
Many details, including the name of the new organization and location of its headquarters, have yet to be finalized.