Gary, Ind.-based Methodist Hospitals signed a nonbinding letter of intent to integrate with Mishawaka, Ind.-based Franciscan Alliance Wednesday, according to the Chicago Tribune.
Under the agreement, both institutions will explore partnership options over a 120-day period. During that time, officials will speak to physicians, staff and community members to discuss the impact of the proposed merger, according to the report.
Methodist Hospitals began its search for a potential partner in June 2016.
"We look forward to maximizing the benefits of this partnership that will bring the best of both systems to our communities," said President and CEO of Methodist Hospitals Raymond Grady.
"We believe that, together, we can provide better access to care, enhance patient services, improve quality, and lower costs through cooperation," said Kevin Leahy, president and CEO of Franciscan Alliance. "By leveraging the talent and expertise of our physicians and clinical staffs we can improve the patient experience for those whom we are privileged to serve."