The deal was the "latest casualty of COVID-19," according to Dr. Stephen Klasko, CEO of Jefferson Health.
Thomas Jefferson University and Temple University called off a planned acquisition of Fox Chase Cancer Center this week, citing the economic impact of the ongoing coronavirus disease 2019 (COVID-19) outbreak.
The two Philadelphia-based organizations reached a binding definitive agreement in December 2019 for Temple to sell Fox Chase to Thomas Jefferson, as well as Temple's bone marrow transplant program.
Neither a closing date nor the financial terms of the now-scuttled transaction were released.
“This transaction is the latest casualty of COVID-19,” Dr. Stephen Klasko, president of Thomas Jefferson and CEO of Jefferson Health, said in a statement. “Because of the tremendous impact that the virus has had on our operations, Jefferson must focus entirely on providing patient care and safety, student education and safety, and the well-being of our dedicated employees.”
Related: Jefferson Health CEO Talks About Healthcare's 'New Normal' After COVID-19
"There is no question that but for the catastrophic economic impact of the virus, both institutions were prepared to move forward to complete this transaction. We fully understand and accept this reality, and we look forward to identifying new ways for our institutions to work together in the future to better serve our community," Richard M. Englert, president of Temple University, said in a statement.
Looking ahead, both organizations expressed plans to embark on "academic and clinical collaborations that positively benefit patients."
Earlier this year, Temple University Health System (TUHS) announced the appointment of Michael A. Young, MHA, FACHE.
TUHS has been involved in an ongoing restructuring plan in recent years, which Young will continue to oversee in his capacity as CEO.
Related: Temple University Health System Taps Michael Young as New CEO
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Philadelphia, Pennsylvania / USA - November 2010: The Dow Chemical building in downtown Philadelphia / Editorial credit: Regine Poirier / Shutterstock.com