ChristianaCare and Virtua Health mull potential merger

ChristianaCare and Virtua Health have signed a nonbinding letter of intent to explore a potential merger, creating a regional nonprofit health system that would provide care across more than 10 counties in New Jersey, Delaware, Pennsylvania and Maryland.

Officials said the partnership would combine the teams and strengths of both organizations, including their hospital-at-home models.

The future health system, which as of yet does not have a name, would be tasked with making healthcare more personalized and easier to navigate for patients and families.

“The future of quality health care in America will be shaped by those who take action today to invest in, care for and be a champion for the needs of patients,” said Dr. Janice E. Nevin, president and CEO of ChristianaCare. 

The organizations did not reveal financial terms of the discussions.

WHAT’S THE IMPACT

The organizations said they’re committed to creating more convenient access to urgent, primary and behavioral healthcare. Another shared commitment is to improve the health of moms and babies by providing high-quality care and maternal risk management for more than 15,000 births per year.

“This collaboration is about two vibrant organizations coming together and doing even more for a growing number of communities we serve,” said George N. Foutrakis, chair of the ChristianaCare Health System Board.

Edward Cloues, chair of the Virtua Health Board of Trustees, said the two organizations have reached “an important stage.”

“Our trustees are encouraged by our initial assessments and conversations, which suggest we could collectively enhance our capabilities and strengthen our outreach to the communities who depend on us,” said Cloues.

Both parties will now engage in due diligence with the intention of negotiating and signing definitive agreements and seeking regulatory approvals. Patient care and day-to-day operations will remain unchanged during this period, the organizations said.

THE LARGER TREND

Headquartered in Wilmington, Delaware, ChristianaCare includes an extensive network of primary care and outpatient services, home health care, urgent care centers, three hospitals (1,430 beds), a freestanding emergency department, a Level I trauma center and a Level III neonatal intensive care unit, a comprehensive stroke center, and regional centers of excellence in heart and vascular care, cancer care and women’s health.

Marlton, N.J.-based Virtua Health is a nonprofit, academic health system that includes five hospitals (1,492 beds), two freestanding emergency departments, 42 ambulatory surgery centers, 38 primary care locations, 30 physical therapy and rehabilitation practices and over 400 additional sites, plus innovative outreach programs like the “Eat Well” food access initiative.