The two nonprofit health systems signed a definitive agreement to merge, less than a week after another major New Jersey health system announced parallel acquisition plans of its own.
Englewood Health will become part of Hackensack Meridian Health, if state and federal regulators sign off on a definitive agreement reached by the two New Jersey health systems.
The nonprofits, which have had a clinical and academic affiliation since 2015, announced the signing of their merger agreement Tuesday. The deal, they said, was struck in response to shifting industry dynamics and in an effort to improve local care delivery.
"As a healthcare system, we need to continuously evolve in order to provide our community with increased access to high-quality care and more specialties and services, close to home," said Englewood Health President and CEO Warren Geller in a statement. "This decision is about building the most efficient, most effective health system possible to benefit the communities we serve."
The merger means a hospital that has operated independently in the area for 130 years will join one of the two large health systems that have grown to dominate New Jersey's market, as Lindy Washburn reported for the North Jersey Record. Less than a month ago, Hackensack Meridian announced a partnership with St. Joseph's Health, and a year ago, the system merged with Carrier Clinic, as the Record reported.
The state's other large health system, RWJBarnabas Health, announced just last week that it is in talks to acquire the 554-bed Trinitas Regional Medical Center, a Catholic hospital in Elizabeth.
Closer ties with Hackensack Meridian's medical school will help Englewood become a tertiary academic hub for the region, the organizations said.
As part of the deal, Hackensack Meridian Health has agreed to invest $400 million in capital for Englewood Health.
Hackensack Meridian Health currently has 17 hospitals, including three academic medical centers, two children's hospitals, nine community hospitals, two rehabilitation hospitals, and a behavioral health hospital. The system employs about 35,000 people.
Englewood Health has one 531-bed hospital, more than 3,400 employees, the Englewood Health Physician Network, and the Englewood Health Foundation.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: Englewood Health President and CEO Warren Geller; board chairmen Thomas C. Senter and Gordon N. Litwin; and Hackensack Meridian Health CEO Robert C. Garrett, FACHE, with staff. (Provided)