Des Moines-based UnityPoint Health and New Mexico-based Presbyterian Healthcare Systems are exploring the possibility of creating a new health care group with the goal of cutting administrative costs under a parent organization, the health care providers announced.

The two groups have signed a letter of intent to explore the formation of a new nonprofit parent organization.

“UnityPoint Health and Presbyterian are two organizations rooted in similar values,” Clay Holderman, president and CEO of UnityPoint, said in a prepared statement. “By lowering administrative costs, building new capabilities, and increasing investments in innovation and clinical excellence, our intent is to help improve affordability and accessibility of care.”

Under a proposed new health care company, UnityPoint and Presbyterian would preserve their brands and continue to deliver care locally, according to a news release.

Goals for exploring the creation of a new health care organization, which would function as a parent company for not-for-profit health systems, include making greater investments in clinics, digital innovation, workforce development and value-based care while lowering overall administrative costs, according to the news release.

“As a not-for-profit health system, we must pave a sustainable path forward to continue serving our communities with care and coverage,” Dale Maxwell, president and CEO, Presbyterian Healthcare Services, said in a prepared statement. “While we’ve done that successfully independently, we know that partnering with like-minded health systems will allow us to accelerate our efforts.”

Kevin Kirkpatrick, UnityPoint Health spokesperson, said it is too soon to project the proposed merger’s impact on health care costs. He also said that because the groups are in the early stages of negotiations, a timeline for completing the move has not been set.

“We are committed to moving forward as quickly as possible while allowing ample time to evaluate and consider the path ahead,” Kirkpatrick said in an email response.

Consolidations have been increasingly occurring in the health care industry. The Federal Trade Commission has increased its scrutiny of the mergers because of concerns that health care costs would increase and wages of employees would be depressed, according to a 2022 article by Purdue University’s Concord Law School.

UnityPoint Health began in 1993 with the merger of Iowa Methodist and Iowa Lutheran. The organization, which describes itself as the fifth-largest nondenominational health system in the U.S., includes more than 8,100 employees and 1,000 physicians. Included in UnityPoint Health’s  operations are Iowa Methodist Medical Center, Iowa Lutheran Hospital, Methodist West Hospital, Blank Children’s Hospital, John Stoddard Cancer Center and others.

UnityPoint Health also operates health care organizations in Cedar Rapids, Dubuque, Fort Dodge, Sioux City, Waterloo, the Quad Cities and Peoria, Ill., according to its website.

Presbyterian Healthcare Services began in 1908 as a tuberculosis sanatorium. The organization has grown to serve 1 in 3 New Mexico residents with health care or health care coverage. The group, with more than 900 physicians, operates nine hospitals and a statewide health plan.