Methodist Hospitals and Franciscan Alliance announced today the signing of a non-binding Letter of Intent (LOI) providing for the integration of the Methodist Hospitals into the Franciscan Alliance system. The proposed transaction would advance the missions of the two systems and further their ability to provide exceptional patient care to the communities that they serve.
The systems firmly believe that their combination will expand access to care, enhance the quality of care and facilitate more efficient delivery of medical services. The parties contemplate a due diligence process of approximately 120 days during which the systems will review and further define the details of their proposed relationship before finalizing an agreement.
The combined system will be better positioned to meet the many challenges posed by today’s rapidly-changing health care marketplace. Combined systems will be better able to address the clinical and financial consequences of the shift to population health management and risk-based contracting.
“We look forward to maximizing the benefits of this partnership that will bring the best of both systems to our communities,” said Ray Grady, President and Chief Executive Officer of Methodist Hospitals. “As the health care landscape evolves, we are dedicated to being forward-looking and ensuring that we continue growing in a way that best serves our patients, communities, physicians and employees.”
Kevin Leahy, President/CEO Franciscan Alliance stated “the Boards and management of Methodist and Franciscan are interested in exploring the possibility of combining our two health systems. We believe that, together, we can provide better access to care, enhance patient services, improve quality, and lower costs through cooperation. 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.”
Throughout the due diligence process, the two systems will continue meeting with physicians, employees, and community representatives to discuss the impact of their proposed relationship on key constituents. A definitive agreement will remain contingent upon typical closing conditions including obtaining all required regulatory approvals.