Steve Lipstein, president and CEO, BJC HealthCare; Mark Turner, president and CEO, Memorial Group. Photo courtesy of BJC Healthcare.

A proposed strategic alliance between BJC HealthCare of St. Louis and Memorial Group of Belleville could offer Metro-East residents enhanced access to a range of health services, as well as help both hospitals adapt to a changing healthcare landscape under the Affordable Care Act, according to spokespersons.

Memorial Group and BJC HealthCare, April 30, announced a letter of intent has been approved by the boards of directors of both health systems, initiating a three-to-four-month due-diligence effort to explore details and develop terms of an alliance. A final decision an affiliation is expected late this summer.

Under the proposed affiliation, BJC HealthCare would become a partner in Memorial Group, which owns Memorial Hospital Belleville and the new Memorial Hospital East under construction in Swansea. There would be no change in name, branding or leadership for Memorial Group. However, BJC representatives would henceforth comprise half the seats on the Memorial Group board.

“Our commitment to Belleville and the Metro East is unwavering,” said Memorial Group Chairman Les Mehrtens. “We all know that the health care industry is rapidly changing. By being proactive and looking for ways that we can position ourselves for the future, we can remain strong for the communities we serve.”

From a business perspective, industry analysts say the alliance could benefit both BJC and Memorial by giving them more clout in negotiating with insurance plans, including those sold through the new ACA Marketplace insurance exchanges.

For BJC, Memorial would represent a new source of referrals for its extensive network of specialized healthcare facilities.

One of the nation’s largest nonprofit health care institutions, BJC currently owns or has alliances with 14 hospitals, as well as home care and hospice services, long-term care facilities, rehabilitation centers and an extensive physician network. That includes the BJC/Washington University Center for Advanced Medicine and Siteman Cancer Center, St. Louis Children’s Hospital, the Rehabilitation Institute of St. Louis, and Alton Memorial Hospital’s new Women’s Health and Childbirth Center, which opened on April 16, 2015.

The largest healthcare provider in the St. Louis region, BJC network includes hospitals and medical centers in the City of St. Louis, St. Louis County, St. Charles County, as well as the cities of Sullivan Farmington and Columbia in Missouri. However, Alton Memorial is currently the BJC network’s only facility in Metro-East.

“We recognize the great reputation of Memorial, and we believe BJC’s expertise can bring sustainable advantages to Metro East patients and physician partners,” said BJC President and CEO Steven Lipstein. “This affiliation would allow both systems to build upon their strengths, providing coordinated, quality care close to home.”

For Memorial, the affiliation could help ensure fiscal stability as well as assistance in adapting to a rapidly changing Belleville-are healthcare environment.

Memorial Belleville is about to become the last major hospital in Belleville. St. Elizabeth’s Hospital last month won approval from state regulators for relocation to O’Fallon. Adjacent East St. Louis no longer has a hospital.

Memorial officials have objected to the relocation of St. Elizabeth’s, saying a resulting increase in patients could overwhelm their facilities. However, Memorial officials said last week that negotiations with BJC were underway prior to state approval of the relocation.

Memorial reported an operating loss last year, in part, because it is not a provider under United HealthCare, one of the area’s largest insurance carriers.

“There are a lot of changing dynamics in our market and the health care industry. This affiliation is a step toward enhancing our care delivery model,” said Memorial Group CEO Mark Turner. “We take very seriously our responsibility to ensure our patients have the very best quality care and facilities now and for generations to come.”