UnityPoint Health and Presbyterian Healthcare Services called off an intended merger, the two health systems announced on October 11.
The deal would have created a 48-hospital health system with roughly $11 billion in yearly revenue, according to Fierce Healthcare.
Executives from UnityPoint, based in Des Moines, Iowa, and Presbyterian, based in Albuquerque, New Mexico, didn’t specify why they called the deal off, but Presbyterian CEO Dale Maxwell told the Albuquerque Journal that it wasn’t due to regulatory approvals and that the health system is open to “other options.”
“Our goal for this partnership was to strengthen local, not-for-profit healthcare in the face of mounting cost pressures across the industry. At Presbyterian, that goal remains unchanged with today’s news,” Maxwell said in a statement. “We will continue to explore new ways to address these structural shifts in healthcare so we can invest in clinical innovation and our workforce. We will remain focused on building a sustainable path forward to serve New Mexicans for generations to come.”
Maxwell told the Albuquerque Journal that no jobs would be affected by the decision.
“We believe this decision allows us to better meet the needs of our patients, team members, communities, and key stakeholders,” Sally Gray, UnityPoint’s board chair and secretary, said in a statement. “As we move forward, UnityPoint Health is focused on identifying new, innovative ways to deliver low-cost, high-quality care to those we serve.”
The two health systems first announced their intent to merge in March 2023 as a way to offset Covid-related operating losses and combat rising supply costs, the Albuquerque Journal reported. In 2022, Presbyterian reported a $105.4 million operating loss and UnityPoint Health reported a $185.4 million operating loss.
Hospitals have increasingly cited financial distress as the reason behind merger and acquisition activity, Healthcare Brew previously reported.
The same day the merger was called off, UnityPoint announced CEO Clay Holderman—who had also previously worked as Presbyterian’s COO—was leaving the health system, Fierce Healthcare reported.
UnityPoint Health did not respond to Healthcare Brew’s request for comment, and Presbyterian Healthcare Services declined to comment further.
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