Hackensack Meridian Health and Hunterdon Health have signed a merger agreement, the two New Jersey nonprofits announced Tuesday. The deal follows their initial exploration in June and still needs approval from state regulators and a federal antitrust review. Financial terms beyond the disclosed investment were not released.
Under the agreement, Hackensack Meridian will invest about $200 million to improve Hunterdon's facilities and programs, plus $30 million to roll out Epic's electronic health record across Hunterdon's care sites. Hunterdon's flagship 184-bed hospital will retain its medical leadership, and its medical practice and integrated network are set to continue for at least five years. A Hunterdon representative will also join Hackensack Meridian's board.
Hunterdon has been financially stable, with operating income of more than $11 million last year, and faces minimal competition in its region. Hackensack Meridian, already the state's largest system with 18 hospitals, holds roughly 30% market share in its service area, similar to rival RWJ Barnabas Health. Fitch Ratings views the acquisition as credit neutral, noting Hunterdon would represent only about 5% of Hackensack Meridian's total revenue.