Cartoon – The Due Diligence Phase
Category Archives: Due Diligence
New Jersey Trinity Health hospital in talks to join Capital Health
Trenton, N.J.-based St. Francis Medical Center, owned by Trinity Health, has signed a letter of intent to explore joining Pennington, N.J.-based Capital Health.
With the letter of intent signed, the two organizations enter a period of due diligence. The process will determine how best to combine and serve the community.
The deal would require approval from state and federal officials.
Although St. Francis Medical Center is a Catholic hospital, it would lose that designation under the deal.
“As a safety-net hospital, ensuring the community has access to care is the heart of our mission,” said Joseph Youngblood, PhD, chair of St. Francis Medical Center’s board, in a May 6 news release. “In response to a broad national transformation of healthcare, we look to combine our strengths with those of Capital, a healthcare leader and grow services for our residents.
Atlantic Health System to add 8th hospital
CentraState Healthcare System, a single-hospital system based in Freehold, N.J., has signed a letter of intent to join Atlantic Health System, a seven-hospital system based in Morristown, N.J.
Under the agreement, Atlantic Health will become the majority corporate member in CentraState and both systems would hold seats on CentraState’s board.
The systems signed the letter of intent after expanding their oncology and neuroscience clinical affiliation earlier this year.
“We are thrilled to partner with CentraState to support their longstanding commitment to the community and make this investment in the health and well-being of New Jersey’s residents and families,” said Atlantic Health System President and CEO Brian Gragnolati in a news release. “Having worked closely over the past few years with the CentraState team, we feel fortunate for this opportunity to combine our talents and resources to deliver high quality, affordable and accessible care for patients across the state.”
Both systems will now begin the due diligence process and work toward a definitive agreement.
619-bed California hospital to join Cedars-Sinai
Huntington Hospital in Pasadena, Calif., has entered into a definitive agreement to join Los Angeles-based Cedars-Sinai Health System, roughly four months after the organizations signed a letter of intent to explore an affiliation.
The agreement calls for investments in 619-bed Huntington Hospital’s information technology, ambulatory services and physician development. Under the agreement, Huntington Hospital would be governed by a local board and its philanthropy and volunteer support would be locally controlled, the organizations said.
“On behalf of everyone at Huntington Hospital, we are all very pleased to have reached this important milestone,” said Jaynie Studenmund, chair of the Huntington Hospital board of directors, in a news release. “We pledge to work cooperatively with all the relevant parties and believe that this proposed affiliation is in the best interest of all of our stakeholders and the greater San Gabriel Valley community.”
The definitive agreement will now be submitted for regulatory review and approval. The review process is expected to take several months.
New Jersey health systems complete merger
Marlton, N.J.-based Virtua Health completed its acquisition of Camden, N.J.-based Lourdes Health System July 1, creating an organization with 280 care locations and more than 13,000 employees.
Virtua said the transaction will reshape healthcare in south New Jersey by combining the care Virtua provides with the specialized care Lourdes provides — particularly in cardiovascular surgery, complex neurosurgery and transplant services areas.
“The value we place on the patient experience and performance improvement — coupled with our commitment to quality and community involvement — will make a tremendous impact on the health and well-being of the patients we serve,” Dennis W. Pullin, president and CEO of Virtua, said in a news release.
The acquisition has been a monthslong process. Talks started when Carbondale, Pa.-based Maxis Health — the parent company of Lourdes and a subsidiary of Livonia, Mich.-based Trinity Health— entered into a nonbinding agreement March 8, 2018, to sell Lourdes to Virtua. The boards of Maxis and Virtua signed a definitive agreement to proceed with the deal in June 2018. Last month — after regulatory review from New Jersey and federal agencies — New Jersey Superior Court Judge Paula Dow approved the transaction, according to Virtua.
Through the acquisition, Virtua has taken ownership of Our Lady of Lourdes Medical Center in Camden, Lourdes Medical Center of Burlington County, Lourdes Medical Associates and Lourdes Cardiology Services.
The combined organization has more than 100 buildings and 2,850 clinicians.
HENRY KOTULA 