This story is developing and will continue to be updated.

Baylor Scott & White Health and Memorial Hermann Health System have called off plans for a mega merger that would have created the largest hospital system in Texas.

"After months of thoughtful exploration, we have decided to discontinue talks of a merger between our two systems. Ultimately, we have concluded that as strong, successful organizations, we are capable of achieving our visions for the future without merging at this time. We have a tremendous amount of respect for each other and remain committed to strengthening our communities, advancing the health of Texans and transforming the delivery of care. We will continue to seek opportunities for collaboration as two forward-thinking, mission-driven organizations," a spokesperson said in a statement.

The merger would have created a closely watched system with 68 hospitals and nearly $15 billion in annual revenue. The combined area the hospitals cover would have spanned 30 Texas counties.

Critics of the merger worried about combining two systems of this size because hospital consolidation can lead to higher prices for insurers and employers. Baylor has said in the past it intended to slow that effect, becoming a national model for cost-effective care.

Jim Hinton, CEO of Baylor Scott & White, described the merger process in an interview recently as very demanding. "Not just for me, but for many members of our team who are doing their current jobs and planning how the world could look with the new merger," he said.

The Houston Business Journal obtained an internal memo sent to employees:

"Our goal was never about getting bigger... Our goal is to create a model for integrated, consumer-centric, cost-effective care, and I am confident in Memorial Hermann's ability to accelerate and achieve this effort," CEO and President of Memorial Hermann Chuck Stokes said in the memo.