BJC, Saint Luke’s Announce Plans to Form Integrated Health System

BJC HealthCare of St. Louis (BJC) and Saint Luke’s Health System of Kansas City (Saint Luke’s) have signed a letter of intent to merge and form an integrated health system to improve patient care quality, access, and affordability.

“Together with Saint Luke’s, we have an exciting opportunity to reinforce our commitment to providing extraordinary care to Missourians and our neighboring communities,” Richard Liekweg, president and CEO of BJC HealthCare, said in the press release.

“Amid the rapidly changing healthcare landscape, this is the right time to build on our established relationship with Saint Luke’s. With an even stronger financial foundation, we will further invest in our teams, advance the use of technologies and data to support our providers and caregivers, and improve the health of our communities.”

BJC and Saint Luke’s have worked together since 2012 when the health systems created the BJC Collaborative, along with Cox Health and Memorial Health, both in Springfield, Missouri.

BJC serves urban, suburban, and rural communities and includes 14 hospitals and multiple health service organizations. The nonprofit organization provides inpatient and outpatient care, primary care, home healthcare, community mental healthcare, and long-term care services.

Faith-based, not-for-profit Saint Luke’s has over 14 hospitals and campuses and more than 100 primary care and specialty offices. The health system treats patients in 65 specialty services across 67 counties in Missouri and Kansas.

The two health systems operate the top three hospitals in Missouri and service distinct geographic markets. The merged health system aims to improve care quality and reduce health disparities in the communities they serve.

Specifically, the potential merger will expand patient access to a health system with an increased capacity to invest in medical advancement and technological innovation. Additionally, the health system will contribute more than $1 billion in annual community benefits to help maintain equitable access to care and address healthcare disparities.

According to the press release, the integrated system will invest in tools, training, and technology needed to recruit and retain healthcare workers. The health system also aims to expand access to clinical trials and improve patient care innovations.

“Both Saint Luke’s and BJC have well-established reputations for delivering exceptional care and elevating the health of the people we serve,” said Melinda L Estes, MD, president and CEO of Saint Luke’s Health System.

“Our integrated health system, with complementary expertise and team of world-class physicians and caregivers, will set a new national standard for medical education and research. Through our decade-long relationship as a member of the BJC Collaborative, we’ve established mutual trust and respect, so the opportunity to come together as a single integrated system that can accelerate innovation to better serve patients is a logical next step.”

The letter of intent to merge was unanimously approved by the health systems’ boards of directors. The organizations plan to reach a definitive agreement in the coming months and the deal’s closing is expected to happen by the end of 2023, pending regulatory review and customary approvals.

If the deal is finalized, BJC and Saint Luke’s will maintain their existing brands and operate from dual headquarters, one in St. Louis serving eastern Missouri and southern Illinois, and one in Kansas City serving western Missouri and sections of Kansas. The integrated health system will continue serving BJC and Saint Luke’s distinct markets.

Liekweg will serve as CEO of the integrated health system, while the initial board chair will be an executive from Saint Luke’s.