September 17, 2021 – Intermountain Healthcare (Salt Lake City, UT) and SCL Health have signed a Letter of Intent (LOI) to merge and create a health system that provides care to patients in Utah, Idaho, Nevada, Colorado, Montana, and Kansas.
Under the LOI, while the organization will be named Intermountain Healthcare, SCL Health’s Catholic hospitals will retain their distinctive Catholic names and continue to operate according to existing practices. In addition to seven Catholic hospitals, SCL Health operates one secular hospital in Colorado.
The merged health system will be headquartered in Salt Lake City, Utah, with a regional office in Broomfield, Colorado.
Dr. Marc Harrison of Intermountain will serve as the president and CEO of the merged organization. Lydia Jumonville of SCL Health will remain in her current role during a two-year integration and serve as a board member on a new combined board to ensure the integration of the two systems.
Intermountain and SCL Health currently provide services in adjacent areas with no geographic overlap.
Upon completion of the merger, the combined system will employ more than 58,000 caregivers and operate 33 hospitals. It will run 385 clinics across six states and provide health insurance to about one million people.
The organizations expect to finalize and sign a definitive agreement by the end of 2021 and close the merger in early 2022.
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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