2 for 1

2 major Texas hospital systems merge with service and innovation in mind

Houston-based Memorial Hermann could soon be part of one of the largest health care networks in Texas. Photo via memorialhermann.org

Two powerhouse medical centers have decided to team up to become one of the largest health care systems in Texas.

Houston-based Memorial Hermann Health System and Dallas-based Baylor Scott & White Health's board members signed a letter of intent to merge and create a combined system, according to an October 1 press release. A definitive agreement is expected to be complete in 2019.

"Together, we believe we will be able to accelerate our commitments to make care more consumer centric; grow our capabilities to manage the health of populations; and bend the unsustainable healthcare cost curve in the state," says Chuck Stokes, president and CEO of Memorial Hermann, in the release. "Through this combined system, we have a unique opportunity to reinvent healthcare and make a profound difference in the lives of millions of Texans."

The two systems together have over 68 hospital campuses, 1,100 care delivery sites, almost 14,000 physicians, and serve almost 10 million patients each year, according to the release.

The combined organization will operate under a unified board, led by Ross McKnight, the current chair of the Baylor Scott & White Holdings Board of Trustees. A vice chair will be selected by Memorial Hermann and will serve as the chair after McKnight's two-year term.

Jim Hinton, current CEO of Baylor Scott & White, will be the CEO. Stokes will serve in the proposed office of the CEO, along with current Baylor Scott & White president, Pete McCanna.

"Baylor Scott & White was founded as a Christian ministry more than 100 years ago; ever since, it has advanced health and driven change in North and Central Texas," McKnight says in the release. "This proposed combination starts the next chapter in the legacies of service and innovation for both systems. It will not only make a positive difference in the lives of millions here, it will become a national model."

Both organizations will maintain their brands and names locally. Executive and support staff will be based in the cities where the two entities currently have operations: Austin, Dallas, Houston, and Temple.

"This is about two mission-driven organizations — both committed to making safe, high-quality healthcare more convenient and affordable — building something transformative together," Hinton says in the release. "We must lead the change in our industry, while insisting we continue to fulfill our unwavering commitments to meeting the needs of all Texans."

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Building Houston

 
 

Just after announcing an investment from United, NEXT Renewable Fuels Inc. scored a SPAC-based IPO. Photo via nextrenewables.com

It’s been a momentous month for Houston-based NEXT Renewable Fuels Inc.

On November 15, United Airlines Ventures announced an investment of up to $37.5 million in the next-generation, low-carbon fuel producing company.

Just a week later, the company revealed it’s going public through a SPAC merger with Industrial Tech Acquisitions II Inc. The deal, expected to close in the second quarter of 2023, assigns a $666 million equity value to NEXT. The publicly traded company will be named NXTCLEAN Fuels Inc.

NEXT, founded in 2016, produces low-carbon fuels from organic feedstock. The company plans to open a biofuel refinery in Port Westward, Oregon, that’s set to start production in 2026. The refinery could produce up to 50,000 barrels per day of sustainable aviation fuel, renewable diesel, and other renewable fuels.

“West Coast states are demanding a clean fuels conversion of the transportation and aviation industries with aggressive targets necessitating rapid increases in clean fuel supplies,” Christopher Efird, executive chairman and CEO of NEXT, says in a news release. “[The company] is advancing toward becoming one of the largest U.S.-based suppliers of clean fuels for these markets, and is investigating and pursuing potential vertical expansion into other clean fuels.”

The proposed public listing of NEXT’s stock on the Nasdaq market and United’s investment are poised to help NEXT reach its goal of becoming a leader in the clean fuel sector. United’s investment appears to be the first equity funding for NEXT.

“Right now, one of the biggest barriers to increasing supply and lowering costs of sustainable fuel is that we don’t have the infrastructure in place to transport it efficiently, but NEXT’s strategic location and assets solve that problem and provide a blueprint for future facilities that need to be built,” Michael Leskinen, president of United Airline Ventures, says in a news release.

United’s investment arm, launched in 2021, targets ventures that will complement the airline’s goal of achieving net-zero emissions by 2050.

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