2013-05-07 – Chilton Hospital Signs Merger Agreement With Atlantic Health System in New Jersey
For more news on mergers and acquisitions, you can view the entire newsletter or our newsletter archive.
Chilton Hospital in Pompton Plains has merged with Atlantic Health System of Morristown, a deal that will expand the network to five hospitals, both organizations announced.
An agreement was signed in which Atlantic, a non-profit, would assume the 260-bed hospital’s $43 million debt and commit additional funds to expand the services and facilities, officials said.
Chilton will retain its name and staff and status as an acute-care hospital in a deal that is subject to review by the state Department of Health and is expected to be finalized by the end of the year.
With the addition of Chilton, Atlantic “will expand access to its high-quality care and award-winning programs and services in Passaic County, where two thirds of Chilton’s patients reside, and to other communities near the New York border,” Atlantic and Chilton officials said in a prepared statement.
Also included in the Atlantic network are Morristown Memorial Hospital, Overlook Hospital in Summit, Newton Medical Center and the Goryeb Children’s Hospital.
Many hospitals nationwide have been consolidating or forming partnerships as economic pressures mount.
Major medical centers across the nation, and especially in North Jersey, have consolidated or formed partnerships that enhance purchasing power and technology efforts while sharing costs. Smaller hospitals are joining with these larger organizations to seek financial stability and to give patients easier access to specialists and state-of-the-art testing equipment and treatment options.
The merger will allow the non-profit Pequannock hospital to retain its name, its status as an acute-care facility and a majority of its 1,400 employees, Chilton’s president and chief executive said in October when the deal was negotiated.