Steward Health Care Announces Merger Agreement with IASIS Healthcare
NEC member Steward Health Care System recently announced it has reached a merger agreement with IASIS Healthcare that would make Steward the United States’ largest private for-profit hospital operator.
After the two companies consolidate operations this year, Steward will operate 36 hospitals across 10 states with a projected revenue of approximately $8 billion in 2018. The merger would expand Steward Health Care’s operations into Utah, Arizona, Colorado, Texas, Arkansas, and Louisiana where IASIS currently operates 18 hospitals. The agreement also includes Steward’s first stake in the insurance business through IASIS’s managed care plan Health Choice, which covers approximately 680,000 people. Steward Health Care will cover over 1.1 million people in all once the merger is complete through Steward’s managed care and health insurance products.
“Our physician-driven accountable care model focused on keeping patients healthy is transforming the health care industry, as this transaction demonstrates,” said Steward Health Care Chairman and CEO, Dr. Ralph de la Torre. “Our model shows how the industry can successfully shift toward a more cost-effective local, coordinated approach that puts patients first.”
The New England Council congratulates Steward Health Care on the announcement of the merger agreement and expansion of operations across the United States. Read more in Providence Business News and The Boston Globe.