Des Moines-based Iowa Health System and Methodist Health Services Corp. of Peoria, Ill., have entered into a non-binding letter of intent to explore a strategic partnership between the two health systems, the companies announced today.

If a final agreement is reached, Methodist Health Services would become the eighth senior affiliate region of Iowa Health System. With annual revenues of $2.3 billion, Iowa Health is currently the sixth-largest nondenominational health system in the United States.

Methodist Health Services operates 37 clinical sites in Illinois, including a 329-bed hospital in Peoria and a school of nursing.  

“Iowa Health System and Methodist are a good fit together,” Iowa Health President and CEO Bill Leaver said in a press release. “Both are quality institutions, both are financially strong, and both are integrated with their physicians. We were searching for a hospital that would add value to our system through quality patient care and excellent patient experience.”

Because Iowa Health operates under a decentralized model of local control, Methodist will maintain its autonomy, including its local board of directors.

Currently, Iowa Health System has affiliation agreements with 25 hospitals in Iowa and Illinois, including 14 major affiliate hospitals in seven regions in the two states and 11 rural hospitals. The proposed senior affiliation with Methodist Health Services would be Iowa Health’s first new affiliation since 1999, when it partnered with Trinity Regional Health System in the Quad Cities.