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Hospital merger creates new entity: Hackensack Meridian Health

When two large entities merge, it can benefit not just the companies, but also the public, who may have greater access to the services the entities provide. One example of this is a recent merger between two large health care systems in New Jersey.

Meridian Health and the Hackensack University Health Network have recently completed their long-awaited merger, creating a company that will be known as Hackensack Meridian Health. The merger connects 11 hospitals in seven counties across New Jersey. The merger will become effective on July 1.

The new entity includes two children's hospitals, nine acute care hospitals and 120 other medical facilities. Twenty-eight thousand individuals will be employed by the new company, as will almost 6,000 physicians. The merger makes it the second biggest hospital system in New Jersey.

Representatives from Meridian Health and Hackensack University Health Network's board of trustees will remain in those positions. The New Jersey Attorney General's Office and Health Department both had to approve the merger, and have already done so.

The merger aims to provide a health system that is both integrated and comprehensive. By merging, it is believed the entity will be able to provide patients to a wider scope of services, whether they are utilizing these services on an inpatient or outpatient basis or are seeking long-term care.

The hospital industry in New Jersey has seen many mergers and acquisitions over the past six years. This is due in part by the Affordable Care Act's provisions on preventative medicine and outpatient care. Many large hospital systems in the state have merged, and many community hospitals that had been running independently have been acquired by chains.

As this shows, mergers can benefit not just the business entities involved in the merger, but also the public who utilizes the services these entities provide. It is hoped that the newly-formed entity Hackensack Meridian Health will do just that, bringing quality and comprehensive health care to patients across the state.

Source:, "Latest N.J. hospital mega-merger unites Hackensack, Meridian," Susan K. Livio, June 21, 2016

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