JFK Health System And Hackensack Meridian Health Merger - Health Professionals & Allied Employees

JFK Health System And Hackensack Meridian Health Merger

CORPORATE STRUCTURE

JFK Health System is a non-profit comprised of fifteen affiliates: JFK Medical Center; JFK Medical Center Foundation; JFK Healthshare; Robert Wood Johnson Jr. Lifestyle Institute; Hartwyck at Oak Tree; Hartwyck West Nursing Home; JFK Population Health Company; Muhlenberg Hospital Foundation; Atlantic Insurance Exchange; JFK Assisted Living d/b/a Whispering Knoll; Hartwyck at JFK; JFK Ambulatory Care; JFK Medical Associates; and JFK Medical Group. JFK employs approximately 5,000 workers.

Founded in 1967, JFK Medical Center is a community hospital with 498 beds, serving Middlesex, Somerset, and Union counties in Central New Jersey. There are more than 900 affiliated physicians, providing primary and specialized care such as cardiac care, maternity, pediatric, and emergency medicine. The Neuroscience Institute was rated as the number one hospital in New Jersey for stroke and complex neurological disorders.

JFK Medical Center began looking for a partner in 2014, accepting Request For Information (RFI) applications in 2015 from Hackensack Meridian Health (HMH), Atlantic Health System, and RWJ Barnabas. JFK eventually chose HMH as their partner.

Hackensack Meridian Health is the second largest health system in New Jersey, with 11 hospitals, and 24 subsidiaries. HMH employs approximately 28,000 workers.

On November 10, 2016 the plan to merge JFK with HMH was announced with a signing of the Letter of Intent (LOI) sent to the State’s Attorney General.

CN EXEMPTION

Since this was a merger between two non-profit hospital entities, the deal was able to avoid the Certificate of Need (CN) process with the NJ DOH. The legal counsel to JFK Health System wrote a letter to Susan Dougherty, Assistant Commissioner of the Office of Certificate of Need and Healthcare Facility Licensure, confirming their understanding of the law that the JFK and HMH merger was not required to undergo the CN process.  Mr. John Calabria, Director of the Division of Certificate of Need and Licensing, responded by letter affirming JFK’s and HMH’s interpretation.

CHAPA PROCESS

Because this was a merger between two not-for-profit entities, the merger is regulated by the CHAPA process, which requires a review by the NJ Attorney General (AG) and the Commissioner of Health.  The AG must determine if the deal is “in the public interest,” and the Commissioner of Health must determine if the proposed deal “is likely to result in the deterioration of the quality, availability or accessibility of health care services in the affected communities.”  Since this was a merger between two not-for-profit systems and there was no purchase or sale of assets, the deal was exempt from the Certificate of Need (CN) process with the NJ Department of Health (DOH). The merger was finalized January 2, 2018.

News

New Jersey hospital to close under proposed deal
Sep 13 2022

St. Francis Medical Center in Trenton, N.J., would close and many of its services would be shifted to another hospital if a proposed transaction between Capital Health and Trinity Health is approved, according to the Philadelphia Business Journal.

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New deals coming
Jan 08 2020

Financial pressures and an increasingly competitive market are driving the consolidation of hospitals in New Jersey. While traditional hospital mergers and acquisitions will continue, an uptick in non-traditional alliances will also occur in 2020.

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Bayonne blues
Dec 02 2019

Bayonne Medical Center is looking for a merger partner amid a consolidation wave, but residents worry about losing access to acute care...

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FTC to Study the Impact of COPAs
Oct 23 2019

The Federal Trade Commission issued orders to five health insurance companies and two health systems to provide information that will allow the agency to study the effects of certificates of public advantage (COPAs) on prices, quality, access, and innovation...

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NJ AG recommends Virtua-Lourdes deal move forward
Jul 01 2019

The proposed deal calls for Virtua to acquire Lourdes and its hospitals, Lourdes Medical Center of Burlington County in Willingboro and Our Lady of Lourdes in Camden, as well as Lourdes’ nursing school, medical associates and cardiology offices. TRENTON —

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Virtua to Acquire The Lourdes Health System
Jun 07 2018

Taken from the TapInto Camden, June 5, 2018 Camden, NJ—Virtua Health has signed an agreement to acquire Lourdes Health System from Trinity Health, including Our Lady of Lourdes Medical Center in Camden. The boards of Virtua Health and Maxis Health System, an

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Sale of Meadowlands Hospital Receives Final Approval
Dec 18 2017

The state has approved the sale of Meadowlands Hospital Medical Center, the Secaucus hospital where admissions have plummeted under private ownership, to a multimillionaire real-estate developer who owns a Bergen County surgical center. 

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HPAE Raises Concerns About HMH-JFK Merger
Oct 31 2017

Last night a dozen HPAE members and staff attended a public hearing on the affiliation of JFK Medical Center with Hackensack Meridian Health (HMH). If the merger goes through, HMH will own 15 hospitals in the state of New Jersey.

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Merger With Hackensack Health System Completed
Mar 02 2016

Palisades Medical Center and The Harborage are now officially part of the Hackensack Health System. Palisades Medical Center will be called HackensackUMC Palisades. HPAE has issued a press release on the merger, including the following comment from Local 5030 President Michele

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Thats all, folks - no more news!

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