Hackensack – Meridian Merger
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).
News
Virtua to Acquire The Lourdes Health System
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
Health Care Antitrust Enforcement Remains a Top Priority for New FTC Commissioners
On April 27, 2018, the United States Senate confirmed President Trump’s five nominees for Commissioners of the Federal Trade Commission (FTC).
New Owner Eager to Take Over Struggling South Jersey Hospital
South Jersey leaders are cautiously optimistic about the plans of a healthcare facility group to revitalize a long-struggling Salem County hospital.
N.J. largest hospital chain’s next acquisition target is a renowned mental health center
Taken from NJ.com, March 15, 2018 Susan K. Livio Looking to expand its vast holdings in New Jersey to include more addiction treatment and mental health services, Hackensack Meridian Health announced Thursday it was exploring a partnership with Carrier Clinic
Two N.J. hospital chains will explore a merger
Two south Jersey hospital chains announced Thursday they are exploring a merger, a deal that would make them one of the most formidable health care networks in the outer-Philadelphia region.
Saint Peter’s, RWJBarnabas ‘informally’ exploring merger
The trend of big health care systems expanding through mergers should continue this year, and one of the big ones could involve Saint Peter’s University Hospital in New Brunswick and RWJBarnabas Health.
Hackensack Meridian acquires another hospital and is now N.J.’s largest chain
Hackensack Meridian Health Wednesday announced it now owns JFK Medical Center in Edison, a deal that creates the largest hospital chain in New Jersey.
Sale of Meadowlands Hospital Receives Final Approval
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.
Cooper Calls Off Purchase of Lourdes Health System
Cooper University Health Care said Friday it "will no longer pursue the acquisition" of Our Lady of Lourdes Medical Center and other assets of a Catholic-run health system.
HPAE Raises Concerns About HMH-JFK Merger
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.
Another merger is creating N.J.’s 4th largest hospital chain
Cooper University Health announced Thursday it plans to acquire three Catholic hospitals in central and south Jersey, creating the fourth largest healthcare chain in a state in which mergers have become routine business.
Another N.J. Hospital Merger is Complete as JFK Joins Large Chain
JFK Health in Edison, one of the last few remaining independent hospitals in New Jersey, will merge with one of the largest health provider chains in the state, according to an announcement by top officials at both nonprofit entities on
Penn Medicine to Finalize Merger With Princeton HealthCare System
The University of Pennsylvania Medicine is about to add its first New Jersey member – Princeton HealthCare System.
Moody’s: NJ hospitals face credit pressure from M&A, reduced subsidies
From Becker’s Hospital CFO Increased competition and lower state subsidies for charity care are putting pressure on nonprofit hospitals in New Jersey, according to a recent report from Moody’s Investors Service. Increased healthcare consolidation has impacted hospitals across the nation, and
The Future of Health Care Mergers Under Trump
The proposed health insurance mega-merger between Anthem and Cignaheads to court on Monday, as the companies face off against a Justice Department seeking to block their $48 billion deal.
More NJ Hospitals Merge: Trying To Improve Health — And Financial Stability
A number of forces, not least Obamacare, are prompting hospitals to consolidate. But will some communities lose out in the new healthcare landscape?
FTC wins appeal to halt Penn State Hershey/PinnacleHealth merger
A federal appeals court decision Tuesday pausing Penn State Hershey (Pa.) Medical Center's merger with PinnacleHealth System has placed the Federal Trade Commission's hospital antitrust review program back on stable ground after a couple concerning losses.
HPAE Calls for Protections in Merger of Hackensack and Meridian Health Systems
HPAE members testifed at two public hearings held yesterday to review the proposed merger of the Hackensack University Health Network and Meridian Health. While supporting the pending merger of Hackensack and Meridian, they urged the New Jersey Attorney General
HPAE Locals to Participate in May 4th Hackensack-Meridian Merger Hearing
On May 4, public hearings will be held in Hackensack, NJ and Neptune, NJ to review the Hackensack-Meridian merger. New Jersey’s Attorney General is required to schedule hearings where the public can testify about the merger. HPAE leaders from Jersey
HPAE Local Leaders Meet to Develop United Strategy Toward Meridian-Hackensack Merger
With the merger of Meridian Health and Hackensack University Health Network drawing closer, leaders of the four HPAE locals who will be dealing with the new, mega health system met recently to discuss a united strategy for the merger
Merger With Hackensack Health System Completed
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
New era begins at Palisades Medical Center as part of Hackensack’s network
From The Record HackensackUMC Palisades, as it will now be known, will become a fully owned part of the system that includes the flagship Hackensack University Medical Center, two jointly owned hospitals in Westwood and Montclair, and the affiliated Englewood
Local 5030 Member Testifies at Public Hearing on Hackensack-Palisades Hospital Merger
At a public hearing before the Office of the NJ Attorney General, held on December 3, Local 5030 VP Zahia Zhort spoke in support, with conditions, of the proposed affiliation agreement between Hackensack University Health Network (HUHN) and Palisades
Thats all, folks - no more news!
In This Local
- Impact of Hospital Mergers
- Merger Laws and Regulations
- Merger Glossary
- New Jersey Open Records Act Request Form
- Cooper Health System And Trinity Health Hospitals Merger
- Community Healthcare Associate's Purchase of Memorial Hospital of Salem County
- East Orange Hospital Bought by Prospect Medical Holdings
- Hackensack - Meridian Merger
- Hackensack-Palisades Merger
- Hackettstown Regional Medical Center Bought by Atlantic Health System, Inc.
- JFK Health System And Hackensack Meridian Health Merger
- Meadowlands Hospital Medical Center Bought By Real Estate Developer Yan Moshe
- Meridian - Raritan Bay Merger
- Robert Wood Johnson Health Care Corporation and Barnabas Health, Inc.
- RWJ Barnabas – Rutgers Proposed Partnership
- Saint Michael's Medical Center Bought by Prime Healthcare Services, Inc.
- Thomas Jefferson University-Kennedy Health System Merger
Upcoming Events
No upcoming events at this time.