The boards of Baylor Health Care System and Scott & White Healthcare signed a definitive agreement today. The said agreement will form a new company that would combine the strengths of the two health systems. The approval of the definitive agreement means that the organizations have completed much of the due diligence phase of the planned merger. This led to an agreement to come together principle. The transaction is expected to close in 2013 subjected to regulatory review processes.

Scott & White Healthcare board chairman, Drayton McLane Jr. said that the board is truly impressed with the collaborative process of the two firms. The company has a total of US$2.0 billion in total operating revenue and US$2.4 billion in assets as of August 2012.

According to the president and CEO of Baylor Health Care System Joel Allison, the companies are focused in the start of the integration planning process. Baylor recorded more than US$4.1 billion in total operating revenue. It has a total of US$5.3 billion assets and US$539 million in community benefit in fiscal year 2012.