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Atlantic Health and St. Peter's Healthcare System have ended plans to merge into a single entity, with the decision coming after an analysis of the “rapidly evolving” national healthcare landscape.
The New Jersey-based health systems gave no further information on the reasons for the merger's failure.
Saad Ehtisham, president and CEO of Atlantic Health, said that while the situation is disappointing, it represents the best path forward for both organizations.
“Despite this, our two organizations have enjoyed a shared history of collaboration on behalf of our patients that I hope will continue to guide our work in the future,” said Ehtisham.
St. Peter's had intended to join Atlantic Health System in a strategic partnership, with both health systems signing a definitive agreement to that effect in June 2024.
The systems had highlighted what they saw as the potential benefits of the transaction, including a more robust physician network, and substantial capital investments in Saint Peter’s, including a new electronic medical record, infrastructure and an expansion of outpatient services.
If the deal had gone through, one of the first steps for the health systems would have been to implement the Epic electronic health record across St. Peter's Healthcare System, with an eye toward improving safety and efficiency in care delivery.
St. Peter's had also stood to benefit from Atlantic Health System's data analytics capabilities, which they said at the time would allow clinicians to make more efficient, informed care delivery that would lower costs.
This marks the second time that Saint Peter's has been unsuccessful in partnering with another system, according to MyCentralJersey. The health system had previously tried to partner with RWJBarnabas Health, but after running into antitrust pushback, the organizations mutually agreed not to go forward with that merger in 2022.
Leslie D. Hirsch, president and CEO of Saint Peter’s Healthcare System, said that while the decision to end the Atlantic Health deal was mutual, both organizations are disappointed.
“Saint Peter’s has proudly fulfilled its Catholic mission for over 118 years in the communities it serves,” said Hirsch. “Saint Peter’s takes great pride in the fact that it is well-positioned for continued success, as it now rethinks its future.”
Though the transaction is now canceled, the systems said they both remain committed to their respective missions and will continue to improve care quality through partnerships such as the Healthcare Transformation Consortium, and potentially other efforts.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.