Manchester, N.H.-based Elliot Health System and Nashua-based Southern New Hampshire Health signed a letter of intent Tuesday to explore a potential partnership.
Under the letter of intent, the health systems will exclusively negotiate the formation of a nonprofit organization to govern the combined entity. Each health system will also retain their individual brand and governance structure.
Officials said the next step is to construct a definitive agreement, subject to approval by the health systems' respective boards of trustees and state regulatory officials.
The organizations also created a website which officials will continue to update with information on the proposed transaction.