Atlantic Health and Saint Peter’s Seek Strategic Partnership

On Jan 31, 2024

Saint Peter’s Healthcare System and Atlantic Health System have signed a Letter of Intent (“LOI”) to establish a strategic partnership, putting the institutions on a path toward reaching a Definitive Agreement within the coming months to fully integrate the two organizations. The LOI is a step in a detailed process of evaluating and designing a new relationship that will benefit both organizations.

Under the terms of the LOI, Atlantic Health System would make significant investments in Saint Peter’s and its service area, helping Saint Peter’s to continue to evolve as a high-quality, resourceful, and comprehensive healthcare system. The two systems would work collaboratively to create significant synergies between the two organizations including transitioning Saint Peter’s onto Atlantic Health System’s electronic medical record system. Additionally, Saint Peter’s would continue to carry on its Catholic mission and abide by the Ethical and Religious Directives for Catholic Health Care Services (ERDs).

Both organizations have been in discussions for some time and are aligned with a patient-centric perspective focused on high-quality, cost-effective services to their communities, consistent with their respective missions. This new venture would also expand upon the systems’ existing relationship in the Healthcare Transformation Consortium, designed to provide broader and more affordable health insurance to employees across New Jersey.

“For the past several years, Saint Peter’s has engaged in a Discernment Process, with the support of The Most Reverend James F. Checchio, Bishop of the Diocese of Metuchen, and Saint Peter’s Board of Governors, to determine the best course for our long-term future. The most critical objective has been to find a path to secure our Catholic mission of serving the community, especially the most vulnerable, as we have done for more than 116 years,” said Leslie D. Hirsch, FACHE, president and CEO of Saint Peter’s Healthcare System. “The hospital industry has substantially transformed over the past 10 years, and we remain the only single-hospital health system in Middlesex County and one of the few remaining in New Jersey. Although Saint Peter’s is stronger today than ever, throughout this journey it has become clear that to assure our future success, we need a strategic partner whose resources, capabilities and values are aligned with our mission. We are very excited about the prospect of becoming a part of Atlantic Health as it has an excellent reputation for being a high-quality healthcare provider and our respective cultures are very well aligned.”

“Today is the first step on an exciting path towards a joining of talents between Saint Peter’s and Atlantic Health System that will benefit the health and well-being of the people of New Jersey,” said Brian Gragnolati, President & Chief Executive Officer, Atlantic Health System. “We are thrilled to partner with Saint Peter’s to ensure that high quality, affordable and accessible care remains available to all who need it.”

Both organizations will now engage in a due diligence process, working towards a definitive agreement, which will define the specifics of their future relationship. Approvals will be necessary from state and federal officials as well as from the Church before the transaction can be considered complete.

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