Meriter owner UnityPoint Health plans merger with New Mexico-based Presbyterian Healthcare

Iowa-based UnityPoint Health, which owns Meriter Hospital in Madison, on Thursday announced a plan to merge with New Mexico-based Presbyterian Healthcare Services.

UnityPoint Health, which acquired Meriter Heath Services in 2014, has 20 hospitals, all in Iowa or Illinois except for Meriter. Presbyterian Healthcare Services has nine hospitals in New Mexico.

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The nonprofit organizations have signed a letter of intent "to explore the formation of a new health care organization," they said in a statement. "The proposed health care company would see both systems preserve their trusted brand and continue delivering care locally while collectively achieving administrative efficiencies under a parent organization."

Goals include making greater investments in clinical excellence, digital innovation, workforce development and value-based care while lowering overall administrative costs, they said.

In 2019, UnityPoint Health explored a merger with South Dakota-based Sanford Health, which didn't materialize. Sandford is now pursuing a merger with Minnesota-based Fairview Health, a move that has been delayed because of concerns by the University of Minnesota Medical Center, part of Fairview.

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In 2017, UnityPoint Health-Meriter and UW Health merged their health insurance plans and started a joint operating agreement, giving them a shared financial bottom line.