Dallas-based Baylor Health Care System and Temple, Texas-based Scott & White Healthcare have completed their merger, forming the largest nonprofit health system in Texas.
The new organization, Baylor Scott & White Health, received all necessary approvals after the two systems signed a definitive merger agreement in June. Baylor and Scott & White initiated merger discussions in December 2012. Financial terms of the deal were never released.
Baylor Scott & White Health, which has roughly $8.3 billion in combined assets according to unaudited 2013 financial reports, includes 43 hospitals, more than 6,000 physicians, 34,000 employees and the Scott & White Health Plan. Joel Allison, CEO of Baylor, is the new CEO of Baylor Scott & White Health. Robert Pryor, MD, CEO of Scott & White, is now president, COO and CMO of Baylor Scott & White Health. The system's headquarters will be in Dallas.
"Over time, patients in the communities we serve will begin seeing the new brand Baylor Scott & White Health emerge," Mr. Allison said in a news release. "We are building a new national model for healthcare delivery engineered to meet the demands of healthcare reform, the changing needs of patients and payers and the extraordinary advances in clinical care."
Currently, Standard & Poor's Ratings Services rates Baylor's credit as "AA-" with a stable outlook, while Scott & White has an "A" credit rating with a stable outlook. Initially, large mergers like this slightly drag down the stronger credit. However, S&P analysts previously said the new health system's credit will improve as its market position and metrics materialize.
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