With federal and state regulatory approvals secured, Memorial Group and BJC HealthCare have signed an agreement to proceed with a strategic affiliation announced in April.
The decision follows a due diligence process that confirmed the opportunity would provide significant advantage to health care in the Metro East.
“The affiliation will be a strong path forward for both systems, and most importantly, the communities we serve,” Memorial Group CEO Mark Turner said. “It will provide greater access to enhanced service lines and medical expertise, as well as an effective and progressive delivery care model.”
“We are drawing upon the strengths and value of two proven health care providers to create one integrated network,” BJC President and CEO Steven Lipstein said. “It’s a proactive step in an ever-changing health care landscape that will allow us to continue providing the highest quality care well into the future.”
Under the terms of the agreement, the affiliation will establish a new jointly owned parent organization, Memorial Regional Health Services, governed by both hospitals. Mark Turner will serve as the organization’s president. A Board of Directors appointed by both systems will oversee Memorial Hospital, Memorial Hospital East, Memorial Foundation and other holdings, which remain intact and community-led.
“The structure preserves our community commitment and maintains our strong leadership teams,” Turner said. “All services will continue as normal, and patients will continue to receive quality care from the Memorial doctors and staff they know and depend on.”
To further enhance care, BJC has committed to capital investments in support of facilities, service line expansion and operational enhancements. Additional joint resources will go toward the organization’s population health and accountable care programs.
Closing is expected by early 2016.