Serving the High Plains
Serving the High Plains
New Mexico-based Presbyterian Healthcare Services and Iowa-based health system UnityPoint Health announced last week they have signed a letter of intent to explore the formation of a new healthcare organization.
Presbyterian operates Dr. Dan C. Trigg Memorial Hospital in Tucumcari and a small clinic in Logan.
The proposed healthcare company would see both systems preserve their brand and continue delivering care locally while collectively achieving administrative efficiencies under a parent organization, according to a joint news release.
“As a not-for-profit health system, we must pave a sustainable path forward to continue serving our communities with care and coverage. While we’ve done that successfully independently, we know that partnering with like-minded health systems will allow us to accelerate our efforts,” said Dale Maxwell, president and CEO of Presbyterian.
“UnityPoint Health shares in our commitment to keeping healthcare delivery local and creating a culture where the workforce thrives which will serve as foundational elements as we embark on this journey.”
Maxwell told the Albuquerque Journal that PHS lost $105 million last year, prompting the board of directors to look for ways to cut costs. Maxwell also said jobs related to patient care of the health plan won’t be affected.
Combined, UnityPoint and Presbyterian treat 4 million patients and members through more than 40 hospital facilities, hundreds of clinics and health plan operations.
The two organizations collectively represent a workforce of 40,000 workforce, including nearly 3,000 physicians and advanced practice clinicians working alongside independent clinicians, educational partners and colleges.
Goals for exploring the creation of a new healthcare organization, which would function as a parent company for nonprofit health systems, include making greater investments in clinical excellence, digital innovation, workforce development and value-based care while lowering administrative costs.
“UnityPoint Health and Presbyterian are two organizations rooted in similar values,” said Clay Holderman, president and CEO of UnityPoint Health. “By lowering administrative costs, building new capabilities and increasing investments in innovation and clinical excellence, our intent is to help improve affordability and accessibility of care. We’re excited about the unique possibilities ahead.”
Both systems will pursue a period of evaluation and exploration of next steps towards a definitive agreement and regulatory approvals.
Founded in New Mexico in 1908, Presbyterian is the state’s largest private employer, with more than 13,000.
UnityPoint Health, based in West Des Moines, Iowa, has relationships with more than 400 physician clinics, 39 hospitals, seven community mental health centers, four accredited colleges and home care services in Iowa, Illinois and Wisconsin. UnityPoint employs more than 32,000.