Denver-based CHI has been building a network in Houston after signing a deal in April to buy six-hospital St. Luke's Episcopal Health System. Last month, the system said it had entered into negotiations to explore a partnership with the Texas Heart Institute, which had sued St. Luke's after the CHI deal, alleging that it was deprived of necessary funding.
As part of the CHI partnership, Texas Heart agreed to drop its legal action.
Baylor itself once explored a merger with St. Luke's in 2005, but the deal never came to fruition. Two years later, then-CEO Dr. Peter Traber told Modern Healthcare that the two systems had different strategies—Baylor wanted to build an academic medical center to serve its faculty, students and residents, while St. Luke's wanted to expand into Houston's suburbs.
Follow Beth Kutscher on Twitter: @MHbkutscher