Two Missouri-based health systems have begun merger negotiations. On May 31, BJC HealthCare of St. Louis and Saint Luke’s Health System of Kansas City announced they have signed a non-binding letter of intent to form an integrated, academic health system in the state. The letter of intent was unanimously approved by both health systems’ Boards of Directors. Combined, this new organization will have $10 billion in revenue.
BJC HealthCare is one of the largest nonprofit integrated academic healthcare systems in the country, providing services to residents primarily in the greater St. Louis, southern Illinois and southeast Missouri regions. With net revenues of $6.3 billion and more than 27,000 employees, BJC HealthCare has 14 hospitals with a total of 3,275 staffed beds and multiple community health locations, according to its website.
Saint Luke’s Health System includes 14 hospitals and campuses across the Kansas City region, home care and hospice, behavioral health care, dozens of physician practices, a life care senior living community and more. Its anchor hospital, Saint Luke’s Hospital of Kansas City, has 468 beds, according to the American Hospital Association.
The organizations are working toward reaching a definitive agreement in the coming months. Closing, which is subject to regulatory review and the receipt of customary approvals, is expected to occur by the end of 2023.
Upon closing, the integrated health system will continue to serve BJC and Saint Luke’s distinct markets, maintain their existing brands, and operate from dual headquarters—one in St. Louis serving eastern Missouri and southern Illinois, and one in Kansas City serving western Missouri and portions of Kansas.
“Together with Saint Luke’s, we have an exciting opportunity to reinforce our commitment to providing extraordinary care to Missourians and our neighboring communities,” said BJC HealthCare President and Chief Executive Officer Richard Liekweg. “Amid the rapidly changing health care landscape, this is the right time to build on our established relationship with Saint Luke’s. With an even stronger financial foundation, we will further invest in our teams, advance the use of technologies and data to support our providers and caregivers, and improve the health of our communities. These are opportunities that we can better achieve together. I am confident that BJC and Saint Luke’s together will be even better positioned to extend our legacy of clinical discovery and deliver medical breakthroughs well into the future.”
