Major Healthcare Merger Between Saint Peter’s and Atlantic Health Abruptly Cancelled: What It Means for Patients and Community | ROI-NJ

Saint Peter’s Healthcare System and Atlantic Health recently decided to cancel their merger plans. This news came on October 6, as both organizations mentioned the challenges in today’s fast-changing healthcare environment.

The two health systems announced their merger intentions in January 2024 and had signed an agreement by June. Atlantic Health operates more than 550 care locations, including seven hospitals in the state. Saint Peter’s, with its 478-bed University Hospital, is the only single-hospital system in Middlesex County. For the merger to proceed, they needed approval from federal and state regulators, as well as the Catholic Church.

Details surrounding the decision to scrap the merger remain sparse. In a joint statement, both CEOs expressed disappointment over the outcome. Atlantic’s President and CEO, Saad Ehtisham, remarked, “While disappointing, we have determined that this is the most appropriate path forward.” He hoped that both organizations would maintain their history of collaboration to improve patient care.

Saint Peter’s President and CEO, Leslie Hirsch, echoed these sentiments. He emphasized Saint Peter’s long-standing commitment to its Catholic mission over the past 118 years, stating that the hospital is positioned for future success as it evaluates its path ahead.

The planned merger would have unified Atlantic’s extensive network with Saint Peter’s facilities. However, this marks Saint Peter’s second failed merger in three years. In 2020, it attempted to merge with RWJBarnabas Health, but the Federal Trade Commission blocked the deal in 2022, citing concerns over reduced competition.

Overall, healthcare mergers have been on the decline lately, reflecting uncertainties in the industry. Issues like potential Medicaid cuts and rising costs for visa applications are causing hesitation among healthcare providers. As a result, many systems are rethinking their strategies and focusing on partnerships over consolidation.

Insights from health industry experts indicate that providers are prioritizing patient care quality over expansion. Staying competitive is essential, and organizations are looking for innovative ways to deliver better services without merging. According to a recent report by the American Hospital Association, nearly 60% of health systems believe that collaboration, rather than mergers, is the future of healthcare.

In closing, while the merger between Saint Peter’s and Atlantic Health is off the table, both systems remain committed to collaboration and improving care through existing partnerships.

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