Baylor Health Care System

About Baylor Health Care System

The Baylor Health Care System (BHCS) offers an array of health care services throughout the Dallas-Fort Worth metroplex. BHCS owns or operates about two dozen acute care and specialty hospitals, including the  Baylor University Medical Center complex, one of the state's major teaching and referral facilities. Other facilities include about 25 surgery – more... centers and more than 250 physician and outpatient care centers, as well as senior health clinics, pharmacies, and research labs. The faith-based (with Baptist roots), non-for-profit system also provides home health care and specialized pediatric services. BHCS is exploring a merger with Scott & White Healthcare.

Change in Company Type

In late 2012 the boards of BHCS and Scott & White Healthcare signed an agreement of their intent to merge to form a $7.7 billion organization called Baylor Scott & White Health. The combined organization would be the largest not-for-profit health system in Texas with 42 hospitals, more than 350 patient care sites, more than 4,000 active physicians, 34,000 employees, and the Scott & White Health Plan. A definitive agreement is expected in 2013.

Operations

BHCS owns or operates 25 hospitals that provide acute care, rehabilitation, surgery, cardiovascular, and pediatric services, and it has affiliation agreements with four other acute care community hospitals in the area. Altogether, the network has more than 4,600 physicians and a capacity of 3,500 beds. The company's affiliated HealthTexas physician group operates nearly 200 primary and specialty care practices in the region; BHCS also operates about two dozen ambulatory surgery centers in its service area through a partnership with United Surgical Partners.

Through the Baylor Research Institute, the system engages in drug development and clinical trials. It launched its first biotech company, ODC, in 2004 to develop a potential cancer vaccine. The institute receives research grants from organizations including the National Institutes of Health, the National Cancer Institute, and the French National Institute for Health to develop treatments for conditions including lupus, melanoma, immunology, and biodefense.

Financial Analysis

BHCS reports some $4 billion in annual revenues, primarily derived from patient care service earnings that mostly come from insurance reimbursements. The company also provides some $500 million annually in community benefits, including charity care for low-income patients lacking health insurance.

Strategy

BHCS is intent on keeping its place as one of the most comprehensive health systems in the area, and to that end keeps up a steady pace of adding new hospitals and expanding existing facilities in recent years. For instance in 2012 the company opened North Texas' first dedicated cancer hospital, the Baylor Charles A. Sammons Cancer Center at Dallas; the facility includes the largest outpatient cancer center in the region. It also expands by opening or acquiring new primary care and specialty clinics.

In addition, BHCS forms collaborations to enhance its service offerings, as well as to control medical costs through shared resources. For instance, the health network formed a partnership with Select Medical's Kessler Rehabilitation unit in 2011 to create a regional rehabilitation network in the Dallas-Fort Worth area.

Company Background

Founded in 1981, BHCS was governed by Baylor University until establishing autonomy in 1997. Following the separation, the health system did not have a formal affiliation with a medical school. That changed in 2011 when the Texas A&M College of Medicine struck a partnership that made Baylor University Medical Center at Dallas a primary teaching hospital for the school. – less

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