Atlantic Health and Saint Peter’s Healthcare System on Monday announced they have mutually agreed to abandon their previously planned member substitution transaction. The decision follows “lengthy discussion and careful analysis” of the rapidly evolving national health care landscape and its impact on hospitals and health systems across the country.
The proposed transaction, which would have formally united the two New Jersey-based health care providers, will no longer move forward.
“While disappointing, unfortunately we have determined that this is the most appropriate path forward,” Saad Ehtisham, president and CEO of Atlantic Health said. “Despite this, our two organizations have enjoyed a shared history of collaboration on behalf of our patients that I hope will continue to guide our work in the future.”
Saint Peter’s to “rethink its future”
The termination means Saint Peter’s Healthcare System, which has proudly fulfilled its Catholic mission for over 118 years, will now evaluate its next steps as an independent entity.
“Although we have agreed to mutually terminate the pending transaction, we are disappointed by this result,” Leslie Hirsch, president and CEO of Saint Peter’s Healthcare System said. Hirsch added that Saint Peter’s is “well-positioned for continued success” as it now rethinks its future strategy.
Commitment to collaboration endures
Despite the collapse of the formal partnership, both systems reaffirmed their commitment to their respective missions and to ensuring residents of Central New Jersey have access to high-quality care.
Both Atlantic Health and Saint Peter’s will continue to collaborate through existing initiatives, such as the Healthcare Transformation Consortium, and will explore other potential efforts to improve care within their communities. The decision concludes months of planning for a formal union but leaves the door open for future, less integrated partnerships.
