Hackensack University Health Network and Meridian Health Merger - Health Professionals & Allied Employees

Hackensack University Health Network and Meridian Health Merger

merger_monitor-Internal
CORPORATE STRUCTURE

Meridian Health consists of 13 first level subsidiaries in the corporate tree, with 6 second level subsidiaries, and 5 third level subsidiaries all emanating from the second level company Meridian Health Foundation, Inc. There are six hospitals: Southern Ocean Medical Center; Bayshore Community Hospital; Riverview Medical Center; Ocean Medical Center; Jersey Shore University Medical Center; and K. Hovnanian Children’s Hospital. Now that the merger between Meridian and Raritan Bay Medical Center is completed, there will be 8 hospitals in the Meridian Health System with the addition of Raritan Bay Medical Center in Perth Amboy and Old Bridge.  All of the Meridian hospitals range in distance from each other from 31 miles for 6 of the hospitals, and two outliers at 40 and then 80 miles from the closest cluster hospital in Neptune.  Additionally, there are five long=term care/rehab facilities in the Meridian package: Brick; Ocean Grove; Shrewsbury; Wall; and Bayshore Health Center.

Hackensack University Medical Center (HUMC) was a subsidiary of the Hackensack University Health Network, Inc. (HUHN) There were three other first-level subsidiaries, two co-owned (with LHP Hospital Group, Inc., forming Montclair Health System, LLC) subsidiaries (Pascack Valley and Mountainside), and then HUMC had five subsidiary facilities.

Palisades Medical Center (PMC) was a subsidiary of Palisades Healthcare Systems, Inc. Other subsidiaries included: Palisades Medical Center Foundation, Inc.; Palisades General Care, Inc. (The Harborage nursing home); Palisades Medical Associates LLC; Palisades Management Enterprises, Inc., with its own subsidiary, Palisades Child Care Center, Inc.

Now that the merger is complete (as of 1 July 2016), the new entity is named Hackensack Meridian Health, Inc. (HMH). Meridian CEO John Lloyd and Hackensack CEO Robert Garrett will be co-CEOs for the first two years of operation, then Lloyd will step down and Garrett will be sole CEO.

The annual revenue generated by the merger of these two systems was estimated to be $3.4 to $3.5 billion dollars. In the first six months of operation as the new HMH entity, July 1, 2016-December 31, 2016, HMH showed an “excess of revenue over expenses” (profit) of $218.9 million.

CN EXEMPTION

Since this was a merger between two non-profit hospital entities, the deal was able to avoid the Certificate of Need (CN) process with the NJ DOH. The legal counsel to Meridian and Hackensack University Medical Center wrote a letter to Susan Dougherty, Assistant Commissioner of the Office of Certificate of Need and Healthcare Facility Licensure, confirming their understanding of the law that the Hackensack and Palisades merger was not required to undergo the CN process.  Mr. John Calabria, Director of the Division of Certificate of Need and Licensing, responded by letter affirming HUMC’s and MerIdian’s interpretation.

CHAPA PROCESS

Because this was a merger between two not-for-profit entities, the merger is regulated by the CHAPA process, which requires a review by the NJ Attorney General (AG) and the Commissioner of Health.  The AG must determine if the deal is “in the public interest,” and the Commissioner of Health must determine if the proposed deal “is likely to result in the deterioration of the quality, availability or accessibility of health care services in the affected communities.”  As a merger between two not-for-profit systems with no purchase or sale of assets, the deal was exempt from the Certificate of Need (CN) process with the NJ Department of Health (DOH). The merger was finalized on June 21, 2016 and went into effect on July 1, 2016.

News

New Jersey hospital to close under proposed deal
Sep 13 2022

St. Francis Medical Center in Trenton, N.J., would close and many of its services would be shifted to another hospital if a proposed transaction between Capital Health and Trinity Health is approved, according to the Philadelphia Business Journal.

Read More

New deals coming
Jan 08 2020

Financial pressures and an increasingly competitive market are driving the consolidation of hospitals in New Jersey. While traditional hospital mergers and acquisitions will continue, an uptick in non-traditional alliances will also occur in 2020.

Read More

Bayonne blues
Dec 02 2019

Bayonne Medical Center is looking for a merger partner amid a consolidation wave, but residents worry about losing access to acute care...

Read More

FTC to Study the Impact of COPAs
Oct 23 2019

The Federal Trade Commission issued orders to five health insurance companies and two health systems to provide information that will allow the agency to study the effects of certificates of public advantage (COPAs) on prices, quality, access, and innovation...

Read More

NJ AG recommends Virtua-Lourdes deal move forward
Jul 01 2019

The proposed deal calls for Virtua to acquire Lourdes and its hospitals, Lourdes Medical Center of Burlington County in Willingboro and Our Lady of Lourdes in Camden, as well as Lourdes’ nursing school, medical associates and cardiology offices. TRENTON —

Read More

Virtua to Acquire The Lourdes Health System
Jun 07 2018

Taken from the TapInto Camden, June 5, 2018 Camden, NJ—Virtua Health has signed an agreement to acquire Lourdes Health System from Trinity Health, including Our Lady of Lourdes Medical Center in Camden. The boards of Virtua Health and Maxis Health System, an

Read More

Sale of Meadowlands Hospital Receives Final Approval
Dec 18 2017

The state has approved the sale of Meadowlands Hospital Medical Center, the Secaucus hospital where admissions have plummeted under private ownership, to a multimillionaire real-estate developer who owns a Bergen County surgical center. 

Read More

HPAE Raises Concerns About HMH-JFK Merger
Oct 31 2017

Last night a dozen HPAE members and staff attended a public hearing on the affiliation of JFK Medical Center with Hackensack Meridian Health (HMH). If the merger goes through, HMH will own 15 hospitals in the state of New Jersey.

Read More

Merger With Hackensack Health System Completed
Mar 02 2016

Palisades Medical Center and The Harborage are now officially part of the Hackensack Health System. Palisades Medical Center will be called HackensackUMC Palisades. HPAE has issued a press release on the merger, including the following comment from Local 5030 President Michele

Read More

Thats all, folks - no more news!

Resources

Upcoming Events

No upcoming events at this time.

Hackensack University Health Network and Meridian Health Merger Contact