Two large Houston systems, Memorial Healthcare System and Sisters of Charity of the Incarnate Word Health Care System, will form an integrated delivery network to provide managed-care services.
The 50-50 joint venture will not include the hospital assets of the systems. However, the network will own an HMO and a PPO as well as primary-care centers.
The venture plans to open 31 centers in southeastern Texas within the first few years of operation.
The network will become operational following federal and state approvals, executives said.
Memorial is Houston's largest not-for-profit hospital system with nine facilities.
Sisters of Charity owns 11 hospitals, four of which are in southeastern Texas.