A PYMNTS Company

BJC, St. Luke’s Hospital Planned Merger Would Create Midwest Giant

 |  June 4, 2023

The proposed merger between BJC HealthCare and St. Luke’s Health System is expected to be the largest hospital merger in recent local history.

The merger would result in over 24 hospitals across three states, with BJC and St. Luke’s reporting revenues of $6.3 billion and $2.4 billion respectively.

The hospital systems are in the process of finalizing details for a potential agreement by the end of the year. This strategy aligns with hospitals’ growing interest in expanding through consolidation.

Read more: FTC v. St. Luke’s: Is the Efficiencies Defense Dead or Alive?

“We haven’t seen a cross-market merger of two large health systems in this region before,” said Louise Probst, executive director of the St. Louis Area Business Health Coalition. “It probably won’t be the last.”

In the United States, there has been a decrease in the number of independent hospitals and small chains. The COVID-19 pandemic highlighted the benefits of being part of a larger healthcare system. This includes improved bargaining power with insurers, increased purchasing capabilities, and access to a larger network for staffing support.