The deal is off. That’s what Saint Peter’s Healthcare System and Atlantic Health System said recently about their pending partnership.
In October, the two parties announced a mutual decision to terminate plans for Saint Peter’s, operator of one of the last independent hospitals in New Jersey, to join the Morristown-based chain.
“While disappointing, unfortunately we have determined that this is the most appropriate path forward,” said Saad Ehtisham, president and chief executive officer of Atlantic Health, in a statement. “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.”
The two organizations first announced the proposed partnership in June 2024.
But since then, the two parties have engaged in “lengthy discussion and careful analysis of the rapidly evolving health care landscape nationally and its impact on hospitals and health systems across the country,” according to a press release.
The two New Jersey health care providers have “mutually agreed” not to proceed with the transaction, the press release said.
Although the decision to part ways was mutual, Leslie D. Hirsch, Saint Peter’s president and CEO, said the organization was still “disappointed by this result.”
“Saint Peter’s has proudly 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,” Hirsch said in a statement.
Despite the dissolution of their business deal, the two organizations will continue to work together “through partnerships such as the Healthcare Transformation Consortium and potentially other efforts to ensure the residents of central New Jersey have access to the highest quality care,” according to the statement.
Atlantic Health’s network includes six acute-care hospitals, including the strategic partnership it forged with CentraState Healthcare System in Freehold in 2021.
The New Brunswick-based Saint Peter’s consists of a non-profit acute care hospital, a state-designated children’s hospital, a surgical center and a network of primary care and specialty physicians.
NJ Advance Media staff writer Susan K. Livio contributed to this report.
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