Nonprofit health system to join larger Hackensack Meridian Health network
Two nonprofit hospitals in New Jersey are set to merge after signing an agreement this week, complete with promises of new investments—though the full financial terms were not disclosed.
According to an announcement, Hackensack Meridian Health (HMH) will effectively acquire Hunterdon Health, who will join the former’s network, complete with a $30 million rollout of the Epic EHR that will bring the hospitals into sync.
HMH also promised to invest $200 million in Hunterdon, for facility upgrades aimed at expanding services and improving patient access. As part of the agreement, the two organizations will be looking into ways to expand clinical and ambulatory services, complete with a physician recruitment plan.
Leaders of both health systems said they agreed to this definitive contract, solidifying an intent to merge signed back in June.
"Today we're making real commitments to the people of Hunterdon County and the surrounding communities," Robert C. Garrett, CEO of HMH, said in a statement. "Hunterdon Health has a long history of excellent, community-centered care. By investing in facilities, technology, and clinical programs, we'll help ensure patients in this region can receive leading-edge care close to home, backed by the resources of our entire network.”
“We look forward to welcoming Hunterdon Health's team members, physicians, and volunteers to the HMH family."
Few changes for staff, leadership
While a member of HMH will join the Hunterdon board, the groups said that it is more of a trade—with representatives of Hunterdon joining the HMH board of trustees.
Otherwise, leadership at Hunterdon will remain local, at least for a period of six years, according to the agreement. Additionally, the nonprofit foundation that supports Hunterdon will continue to operate independently, with all donor money kept locally to improve patient care delivery in the community.
A joint committee, with equal representation from Hunterdon and HMH, will also be established to ensure HMH is compliant with the terms of the merger, the hospital groups stated.
“This agreement reflects months of careful work and a shared commitment to what matters most: our patients, our employees, our physicians, and our communities,” said Kristy Alfano, President and CEO of Hunterdon Health. “Joining HMH will strengthen our ability to invest in our people, expand services, and bring new technology and specialty expertise to our region. Just as important, the agreement keeps local leadership and community input at the heart of how Hunterdon Health serves its neighbors.”
The agreement also ensures physician and staff continuity. Hunterdon will keep its own medical staff leadership and peer review process, with its medical staff offered employment contracts with HMH for at least five years.
The deal is subject to review under New Jersey's Community Health Care Assets Protection Act and federal antitrust laws.
HMH is the largest healthcare network in the state, comprising 18 hospitals and over 500 care sites.
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