UnityPoint Health is no longer pursuing a merger with Presbyterian Healthcare Services, UnityPoint officials announced in a news release Wednesday, Oct. 11.
Des Moines-based UnityPoint and Albuquerque, New Mexico-based Presbyterian Healthcare had announced their intent in March to form a new health care company.
Fierce Healthcare reports the cross-market merger would have yielded a 48-hospital system with about $11 billion in annual revenue.
“After significant planning and consideration, the two organizations will no longer be pursuing the transaction,” the UnityPoint release said. No other information was provided as to the reason the planned partnership was dropped.
“We believe this decision allows us to better meet the needs of our patients, team members, communities, and key stakeholders,” said Sally Gray, RN, UnityPoint Health board chair. “As we move forward, UnityPoint Health is focused on identifying new, innovative ways to deliver low-cost, high-quality care to those we serve.”
“Our goal for this partnership was to strengthen local, not-for-profit health care in the face of mounting cost pressures across the industry,” Presbyterian CEO Dale Maxwell said in a joint statement. “At Presbyterian, that goal remains unchanged with today’s news. We will continue to explore new ways to address these structural shifts in health care 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.”
As a result of Wednesday’s announcement, UnityPoint Health also announced Clay Holderman will step down as UnityPoint’s president and CEO “to explore other professional opportunities, and we wish him well.”
Mr. Holderman was named UnityPoint president and CEO in January 2021, after serving the previous four years as Presbyterian Healthcare Services’ executive vice president and chief operating officer.
The UnityPoint Health board of directors has named Scott Kizer as the organization’s new president and CEO. Mr. Kizer became UnityPoint’s chief legal officer in the fall of 2021.
“We’re confident in Scott’s leadership going forward, and we remain committed to showing our people, patients and communities how much they matter,” Ms. Gray said.
UnityPoint Health comprises 20 regional hospitals and 19 other community network hospitals, including St. Luke’s Hospital in Cedar Rapids.
UnityPoint had previously planned to merge with Sioux Falls, South Dakota-based Sanford Health, but that $11 billion, 76-hospital merger was called off in late 2019, Fierce Healthcare reports.
