Pair of century-old Seattle-area health systems explore merger

Seattle-based Virginia Mason and Tacoma-based CHI Franciscan announced Thursday the two health care systems have signed a nonbinding memorandum of understanding to explore a merger that would create “the health care system of the future.”

The merger has been in the works for several years, Virginia Mason CEO Gary Kaplan told the Business Journal. Combined, the two nonprofits would be a $4.5 billion system with 12 hospitals serving western and central Washington. They have the potential to employ 21,000 people, including nearly 5,000 providers.

“We think it’s a natural progression,” CHI Franciscan CEO Ketul Patel told the Business Journal. Patel is also the president of the Pacific Northwest Division of CHI’s parent company, CommonSpirit Health.

“We’re excited to be envisioning what some people have called the health care system of the future,” Kaplan said. “We think we can do that better together.”

https://www.bizjournals.com/seattle/news/2020/07/16/virginia-mason-chi-franciscan-merger.html