Saint Peter’s Healthcare System and Atlantic Health scrapped plans to merge on Oct. 6, citing the impacts of what the two systems described as a “rapidly evolving healthcare landscape nationally.”
The health care systems first announced plans to combine in January 2024 and signed an agreement to merge the following June. Atlantic operates more than 550 sites of care, including seven hospitals in the state, according to the system. Saint Peter’s operates the 478-bed Saint Peter’s University Hospital and is the only single-hospital health system in Middlesex County. The merger needed approval from both federal and state regulators as well as the Catholic Church.
Neither health care provider disclosed many details about the decision to end the merger. In a joint statement issued Oct. 6 both Atlantic President and CEO Saad Ehtisham and Saint Peter’s President and CEO Leslie Hirsch called the deal’s end disappointing.
“While disappointing, unfortunately we have determined that this is the most appropriate path forward,” said Ehtisham. “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.”
Both systems said they remain committed to improving care through partnerships, including their continued participation in the Healthcare Transformation Consortium.
“Although we have agreed to mutually terminate the pending transaction, we are disappointed by the result,” said Hirsch. “Saint Peter’s has profoundly fulfilled its Catholic mission for over 118 years in the communities it serves. Saint Peter’s takes great pride in the fact that it is well-positioned for continued success as it now rethinks its future.”
The proposed deal would have joined Atlantic’s more than 550 sites of care, including eight hospitals, with Saint Peter’s single, 478-bed hospital and other outpatient facilities.
The terminated deal marks the second failed merger for Saint Peter’s in three years. The New Brunswick health care provider and RWJBarnabas Health sought to combine in 2020. However, the health systems called off the merger in 2022 after the Federal Trade Commission intervened to block the deal, saying it would reduce competition.
Merger activity in the health care industry has declined as the sector has been whipsawed by pending Medicaid cuts, tariffs on pharmaceuticals, increases to fees for H-1B visa applications and a government shutdown as lawmakers face the looming expiration of Affordable Care Act subsidies.
