New Jersey-based nonprofit health system Hackensack Meridian Health plans to acquire Englewood Health.
Hackensack committed a $400 million capital investment in Englewood as part of a definitive agreement signed by the boards of both health systems, it was announced Tuesday. It is a "strategic move" that extends an existing clinical and academic affiliation formed in 2015, officials said.
“We are thrilled Englewood wants to be part of Hackensack Meridian Health," said Robert Garrett, CEO of Hackensack Meridian Health, in a statement. "We believe they will be a great addition to our network. We will continue to improve the well-being of communities with more cost-effective care that delivers quality, safe outcomes, clinical excellence and a superior experience.”
Hackensack University Medical Center is a 770-bed research and teaching hospital located just outside of New York City with $5.6 billion in annual revenue. Englewood—also just outside New York City—is a 352-bed hospital with $665.9 million in revenue in fiscal 2018.
The deal still needs to undergo regulatory review by New Jersey's Office of the Attorney General, the New Jersey Department of Health and the Federal Trade Commission. It's the second potential merger announced between New Jersey health systems this month. Officials from West Orange, New Jersey-based health system RWJBarnabas recently signed a letter of intent to acquire Elizabeth, New Jersey-based Trinitas Regional Medical Center and its affiliates.
The expanded affiliation with Hackensack Meridian's medical school will enable Englewood to become a tertiary academic hub and will allow it to benefit from Hackensack's partnership with institutions such as Memorial Sloan Kettering Cancer Center and Carrier Clinic, New Jersey’s largest behavioral health provider, officials said.
The decision is part of a necessary evolution, said Warren Geller, president and CEO of Englewood Health. “This decision is about building the most efficient, most effective health system possible to benefit the communities we serve," Geller said in a statement.
“Joining Hackensack Meridian Health will ensure our ability to deliver world-class care to the communities we serve in a broader way, with greater resources and more cutting-edge technologies available to us," he said.
The planned $400 million capital investment would be aimed at positioning a tertiary hub in northern New Jersey with a focus on cardiovascular care, neuroscience, oncology, robotic surgery, women’s health, neonatal intensive care, stroke care, thoracic surgery and an ambulatory care network throughout the region, officials said.