NEW MEXICO (KRQE) – A planned merger between healthcare companies has been called off. Earlier this year, Presbyterian Healthcare Services planned on teaming up with UnityPoint Health to create a new parent company, but now plans have changed.

“Our goal for this partnership was to strengthen local, not-for-profit healthcare in the face of mounting cost pressures across the industry. At Presbyterian, that goal remains unchanged with today’s news,” Dale Maxwell, CEO of Presbyterian Healthcare Services, said in a press release. “We will continue to explore new ways to address these structural shifts in healthcare so we can invest in clinical innovation and our workforce. We will remain focused on building a sustainable path forward to serve New Mexicans for generations to come.”

Sally Gray, a registered nurse and UnityPoint Health board chair, said canceling the merger will better serve patients.

“We believe this decision allows us to better meet the needs of our patients, team members, communities, and key stakeholders. As we move forward, UnityPoint Health is focused on identifying new, innovative ways to deliver low-cost, high-quality care to those we serve,” Gray said in a press release.

The original merger plan was intended to lower costs for patients by consolidating administrative services.