ChristianaCare and south Jersey-based Virtua Health have signed a non-binding letter of intent (LOI) to explore a regional health system. The combined system would provide care across more than 10 counties in New Jersey, Delaware, Pennsylvania and Maryland, with more than 600 sites of care, nearly 30,000 employees, and academic programs supporting more than 500 residents and fellows.
Both organizations operate a combined eight hospitals in an an area extending from Cecil County, MD to southern New Jersey.
Based on total employment, both health care systems are of comparable size. ChristianaCare is the state's largest hospital system.
ChristianaCare and the state's hospital systems have been under the microscope, with the General Assembly passing a bill that formed a hospital rate regulation panel. ChristianaCare has filed suit, claiming the board is unconstitutional.
“This is an exciting first step in a collaborative journey to amplify the strengths of two trusted health systems,” said Dennis W. Pullin, CEO of Virtua Health. “We see this as a unique opportunity to shape the future of care in this region with innovation and intention. Together, we aim to create an integrated regional health system built on human connection, clinical excellence and a deep commitment to all people in the communities we serve.”
“The future of quality health care in America will be shaped by those who take action today to invest in, care for, and be a champion for the needs of patients,” said Janice E. Nevin, CEO of ChristianaCare. “At a time of great uncertainty in health care, ChristianaCare and Virtua Health have the foresight and courage to explore what is possible. We are excited to take this bold step to double down on our mission, multiply our excellence and ensure our legacy of high-quality care in our local communities for generations to come.”
According to a release, the future entity would be guided by a shared vision to deliver convenient, innovative, high-quality care across the region, and to make health care more personalized and easier to navigate for patients and families. This vision includes a commitment to create more convenient access to urgent, primary, and behavioral health care and to improve the health of moms and babies through a proposed maternal risk program that would support more than 15,000 births per year.
“This collaboration is about two vibrant organizations coming together and doing even more for a growing number of communities we serve,” said George N. Foutrakis, chair of the ChristianaCare Health System Board. “Our vision for this new health system – when Medicare and Medicaid are facing cuts and many hospitals are struggling to stay open – gives me hope and excitement for our future and for the health of our neighbors.”
“We’ve reached an important stage. Both organizations are signaling the desire to continue a thorough and strategic exploration of what would be possible if we joined two legacies of health care excellence,” said Edward Cloues, chair of Virtua Health Board of Trustees. “Our trustees are encouraged by our initial assessments and conversations which suggest we could collectively enhance our capabilities and strengthen our outreach to the communities who depend on us.”
Both parties will now engage in due diligence with the intention of negotiating and signing definitive agreements and seeking regulatory approvals. High-quality patient care and day-to-day operations will remain unchanged during this period, a release stated. Both ChristianaCare and Virtua Health will continue to operate as separate, independent entities while they explore this potential arrangement.
ChristianaCare has been in an expansion mode in recent years, acquiring the parent organization for Union Hospital in Cecil County, MD and exploring a merger with the now defunct Crozer Health in Delaware County, PA. That plan was dropped for reasons that included the conversion of Crozer to nonprofit status.
The hospital system, based near Wilmington, went to acquire the Jennersville Hospital site in southern Chester County, PA. The building will open as an emergency center and "micro hospital" this summer.
ChristianaCare is also a partner in two micro hospitals (one under construction) in Delaware County, PA and acquired Crozer's outpatient centers in a $53 million deal.
Recently, it announced an affiliation of its pediatrics operations with Children's Hospital of Philadelphia (CHOP).
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