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Intermountain Health, SCL Health to merge into $14 billion, 33-hospital system

por John R. Fischer, Senior Reporter | September 20, 2021
Business Affairs
Intermountain Healthcare and SCL Health have agreed to merge into a 33-hospital, $14 billion healthcare system
Intermountain Healthcare and SCL Health have inked a letter of intent to merge into a $14 billion health system spanning across six states.

The two nonprofits will operate 33 hospitals and run 385 clinics across Utah, Idaho, Nevada, Colorado, Montana and Kansas when the deal is completed. The combined system will employ over 58,000 caregivers and provide health insurance to about one million, according to Fierce Healthcare.

The deal is expected to be finalized and signed by the end of 2021, with the merger to close in early 2022, pending approvals. "American healthcare needs to accelerate the evolution toward population health and value, and this merger will swiftly advance that cause across a broader geography,” said Dr. Marc Harrison, president and CEO of Intermountain, in a statement.

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The combined system is expected to be a model for faith-based and secular healthcare systems alike, with Intermountain offering its model of value-based care and population health expertise and SCL Health bringing experience in running an integrated healthcare organization across multiple states and in competitive markets.

Intermountain also brings a digital health platform and an extensive telehealth network. It previously planned to merge with Sanford Health last year into a system that was slated to operate 70 hospitals and 435 clinics across seven states. This deal, however, was put on hold following the controversial exit of Sanford Health president and CEO Kelby Krabbenhoft, who resigned after telling staff that he did not need to wear a mask. It was then cancelled in March 2021, according to Becker’s Hospital Review.

Intermountain and SCL Health currently serve adjacent, geographically separate areas. They plan to remain focused on their facilities’ pandemic-related needs while the merger moves forward. The resurgence of cases have left ICUs packed beyond capacity and hospitals with a lack of available beds. Like other providers, Intermountain made the difficult decision this past week to once again postpone elective and non-urgent procedures for several weeks to free up room for patients most in need.

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