Virtua Health and ChristianaCare, two of the Mid-Atlantic region's largest health care systems, are exploring the possibility of combining their 600 health care sites in New Jersey, Delaware, Pennsylvania and Maryland into one system.
The nonprofit health systems announced Wednesday that they have signed a letter of intent to explore a merger that impact about 30,000 employees and generate $6 billion in annual revenue.
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"We are excited to take this bold step to double down on our mission, multiply our excellence and ensure our legacy of high-quality care in our local communities for generations to come," Janice E. Nevin, president and CEO of ChristianaCare, said in a statement.
ChristianaCare is Delaware's largest health system, and it has shown interest in expanding in recent years. A potential acquisition of Crozer Health in 2022 was abandoned amid the Delaware County health system's financial struggles. Crozer's four hospitals have all closed since the COVID-19 pandemic. ChristianaCare won five of Crozer's outpatient sites in a bankruptcy auction in May. Two small ChristianaCare hospitals are planned in Delco, along with another at the former Jennersville Hospital in Chester County.
In Maryland, ChristianaCare has a hospital in Elkton and several urgent care centers in the northern part of the state.
Virtua Health has five hospitals in South Jersey, two satellite emergency rooms and more than 400 other sites. In addition to own its specialty care practices, the health system also has a cancer care affiliation with Penn Medicine and a pediatric partnership with the Children's Hospital of Philadelphia. Virtua expanded its footprint in New Jersey in 2019 with the acquisition of Lourdes Health System, taking over its hospitals in Willingboro and Camden.
"We see this as a unique opportunity to shape the future of care in this region with innovation and intention," Virtua President and CEO Dennis W. Pullin said in a statement.
The letter signed Wednesday is non-binding, and the potential timeline for a merger would be subject to regulatory approvals. The combined regional nonprofit health system would span 10 contiguous counties in the four states, creating a network that rivals similar merger activity in the area.
In South Jersey, Cooper University Health Care acquired Cape Regional Medical Center last year. Jefferson Health's merger with Lehigh Valley Health Network last August created a 32-hospital system with more than 700 care locations in Eastern Pennsylvania and South Jersey. Penn Medicine, which now owns seven hospitals, acquired Doylestown Health in April.