Albuquerque, N.M.-based Presbyterian Healthcare Services and West Des Moines, Iowa-based UnityPoint Health are exploring the possibility of a merger that could result in an approximately $11 billion entity.
The two systems have signed a letter of intent as they look to evaluate the possible merger in more detail and seek regulatory approvals. Such a combined entity would employ over 40,000 people, including approximately 3,000 physicians and advanced practice clinicians.
The purpose of such a merger would be to allow for greater investments in clinical excellence, digital innovation, workforce development and value-based care, the March 2 joint statement said. Overall administrative costs would also be lowered.
Presbyterian Healthcare reported an overall loss of $370.7 million in 2022 as heavy investment declines dragged on its performance. The nine-hospital system has a licensed bed capacity of 1,017 and reported 2022 revenues totaling $5.5 billion.
UnityPoint Health operates 20 regional hospitals in Iowa, Illinois and Wisconsin, as well as 19 community network hospitals.