Baptist Memorial Health Care mulls merger

The Baptist health care systems based in Memphis and Jackson, Mississippi, are discussing collaborations that could include a combination or merger in the future, officials announced Thursday.

Memphis-based Baptist Memorial Health Care Corp. includes 17 affiliated hospitals and a total of 14,000 employees in three states including Mississippi. Jackson-based Mississippi Baptist Health Systems is the parent company of four medical centers, including Baptist Medical Center in Jackson, as well as related services, and has about 3,700 employees.

The discussions of possible collaborations focus on how working together to deliver “faith-based, efficient, highquality health care,” said a joint statement released in Memphis by Baptist Memorial Health Care.

Baptist Memorial had net patient revenue of more than $1.9 billion and Mississippi Baptist nearly $475 million for their fiscal 2015 years, according to financial and credit reports. Both systems posted operating losses — more than $100 million for Baptist Memorial and nearly $17 million for Mississippi Baptist — for that budget year.

After adding other revenue sources for 2015, Baptist Memorial’s bottom line was a $40.8 million loss, officials said.

The two health care networks share a religious connection but are separately administered. Private, nonprofit Baptist Memorial is affiliated with Baptist conventions of Tennessee, Mississippi and Arkansas. Mississippi Baptist is affiliated with the Mississippi Baptist Convention, officials said.

“The discussions are currently conceptual, but may include a combination or merger in the future. If such an agreement were reached, it would create one of the largest Baptist health systems in the country,” the joint statement said.

With similar cultures and brands, “a collaboration of this kind would offer significant advantages over other health care partnerships and ventures.”

The efforts would include expanding the Epic electronic medical records system adopted by the Memphis-based Baptist system to Mississippi Baptist.

Baptist Memorial’s flagship hospital is in East Memphis.