Major South Jersey Health Care Provider Explores Merger With Regional System

SOUTH JERSEY — One of South Jersey's largest health care providers is looking to merge with another hospital network.

South Jersey-based Virtua Health is looking to join forces with ChristianaCare — Delaware's largest health care provider — the organizations announced Wednesday.

Both parties signed a non-binding letter of intent to explore the co-founding of a regional, not-for-profit health system. They will now negotiate and seek approval from regulators.

"We see this as a unique opportunity to shape the future of care in this region with innovation and intention," Virtua Health President Dennis W. Pullin said in a statement. "Together, we aim to create an integrated regional health system built on human connection, clinical excellence and a deep commitment to all people in the communities we serve."

Virtua Health operates five hospitals and a network of emergency departments, urgent cares and medical offices throughout the region. ChristianaCare has three hospitals and several medical facilities across Delaware.

The combined system would have more than 600 sites of care and nearly 30,000 employees.

During negotiations, both will continue operating as separate entities, and day-to-day care will remain unchanged. They did not disclose whether any facilities will change ownership or what the new health system will be called.

The merger would further a regional and national trend of health care providers conglomerating. In South Jersey, Cooper Health acquired Cape Regional Health System, expanding its footprint of hospitals to the Jersey Shore.

Two months ago, ChristianaCare successfully bid $50.3 million to acquire facilities from Pennsylvania-based Crozer Health, which recently went bankrupt and shut down multiple hospitals.

"Our vision for this new health system, when Medicare and Medicaid are facing cuts and many hospitals are struggling to stay open," said George N. Foutrakis, chair of the ChristianaCare Health System Board, "gives me hope and excitement for our future and for the health of our neighbors."