Hackensack Meridian Health and Hunterdon Health Sign Definitive Agreement to Merge

Hackensack Meridian Health (HMH) and Hunterdon Health today signed a definitive agreement for Hunterdon Health to join the HMH network. Both organizations’ Boards of Trustees approved the agreement and leaders from both organizations signed the agreement at HMH headquarters in Iselin.

The signing follows the organizations' June announcement that Hunterdon Health and Hackensack Meridian Health signed a letter of intent to explore a proposed merger between the two health care organizations. At that time, the organizations said they intend to work diligently toward a definitive agreement. Today's agreement completes that step and sets out the terms both organizations will follow as they seek regulatory approval.

"Today we're making real commitments to the people of Hunterdon County and the surrounding communities," said Robert C. Garrett, CEO of Hackensack Meridian Health. "Hunterdon Health has a long history of excellent, community-centered care. By investing in facilities, technology, and clinical programs, we'll help ensure patients in this region can receive leading-edge care close to home, backed by the resources of our entire network. We look forward to welcoming Hunterdon Health's team members, physicians, and volunteers to the HMH family."

Key Commitments in the Definitive Agreement

• $200 million capital investment: HMH will invest $200 million in strategic capital projects that improve access to care, including investments in Hunterdon facilities, programs, and the communities Hunterdon Health serves.
• $30 million Epic investment: HMH will fully fund the rollout of its Epic electronic health record across Hunterdon Health, including Hunterdon Medical Center, ambulatory sites, Hunterdon Medical Group, and participating independent physicians.
• Local governance and community voice: For six years after closing, Hunterdon will keep local board oversight. A Hunterdon representative will join the HMH Board of Trustees, and Hunterdon representatives will serve on other HMH boards and committees. A Hunterdon Community Advisory Committee will give local input on community health needs.
• Funds donated locally stay local: The Hunterdon Healthcare Foundation will continue as a separate organization. It will honor donor intent, and money raised locally will continue to support Hunterdon Medical Center and its services.
• Physician and medical staff continuity: Hunterdon Medical Center will keep its own medical staff leadership and peer review. Hunterdon Medical Group will remain an employment option for physicians for at least five years. Hunterdon Health's clinically integrated network will continue for at least five years.
• Clinical growth: The organizations will jointly evaluate the expansion of clinical services and the ambulatory network in the Hunterdon region, as well as a physician recruitment plan.
• Accountability: A joint committee with equal representation from Hunterdon and HMH will monitor HMH's compliance with its key commitments.

"This agreement reflects months of careful work and a shared commitment to what matters most: our patients, our employees, our physicians, and our communities," said Kristy Alfano, President and CEO of Hunterdon Health. "Joining Hackensack Meridian Health will strengthen our ability to invest in our people, expand services, and bring new technology and specialty expertise to our region. Just as important, the agreement keeps local leadership and community input at the heart of how Hunterdon Health serves its neighbors."

Hunterdon's current leadership team will continue to run day-to-day operations.

Next Steps

The merger still requires customary state and federal regulatory reviews and approvals, including review under New Jersey's Community Health Care Assets Protection Act (CHAPA) and federal antitrust review. Until closing, Hunterdon Health and Hackensack Meridian Health will continue to operate as independent organizations, and patients should continue to receive care from their current providers and locations as usual.