BJC HealthCare and Saint Luke’s Health System join forces in $10 billion initiative

BJC HealthCare and Saint Luke’s Health System, two prominent entities in Midwest healthcare, are set to embark on a venture with a merger valued at $10 billion. The formalization of a definitive agreement marks the culmination of an extensive evaluation process that commenced in May. This strategic alliance brings together the strengths of both organizations, resulting in a formidable healthcare juggernaut comprising 28 hospitals. The anticipated closing date for this transformative merger is scheduled for January 1, 2024.

In a joint statement released on Wednesday, the partnering entities conveyed that their cross-market amalgamation had successfully navigated “all regulatory reviews,” marking a pivotal milestone in the realization of their shared vision. Richard Liekweg, the President and CEO of BJC, articulated his enthusiasm, remarking, “This is an exhilarating day for the trajectory of healthcare in the Midwest.” He emphasized the comprehensive due diligence undertaken in collaboration with Saint Luke’s, underscoring the affirmative findings that underscored the manifold opportunities to enhance healthcare provision across their respective communities.

Liekweg expounded on the overarching commitment of the integrated health system to furnish exceptional care to their communities while concurrently evolving into the Midwest’s preeminent hub for world-class medical practice, groundbreaking clinical research, and innovative care models.

The organizational framework of the merger will see Saint Luke’s seamlessly assimilating into the broader BJC umbrella. Despite functioning as a unified, academic health system, both entities will retain individual branding in their current geographical domains. BJC Healthcare, headquartered in St. Louis, boasts an expansive network spanning the greater St. Louis region, southern Illinois, and southeast Missouri. Consisting of 14 hospitals, among them the renowned Barnes-Jewish and St. Louis Children’s affiliated with Washington University School of Medicine, BJC oversees a range of health service organizations providing home health, long-term care, workplace health, and various other services. 

Saint Luke’s, headquartered in Kansas City, Missouri, functions as a faith-based system, boasting 14 hospitals and a network of over 100 offices across western Missouri and selected regions of Kansas. Saint Luke’s offers a wide array of services, including home care, hospice, adult and children’s behavioral care, and a senior living community.

The helm of the combined entity is set to be captained by Richard Liekweg, who will assume the role of CEO, while Melinda Estes, M.D., the current CEO of Saint Luke’s, is slated to retire at the close of the year. The inaugural chair of the board will be appointed from the Saint Luke’s contingent.

Both organizations restated their commitment to amplifying services and channeling a combined $1 billion annually into community benefits. Furthermore, they aimed to emphasize their dedication to expediting medical and patient care innovation, along with an emphasis on attracting and retaining a robust workforce.

Melinda Estes, the CEO of Saint Luke’s, expressed optimism about the transformative potential of the merger, emphasizing the opportunity to enhance community health over the long term and establish a new national benchmark for medical education and research. With distinct expertise and clinical care capabilities across divergent markets, the integrated system is poised to offer comprehensive patient care across the continuum.