Saint Peter’s, Atlantic Well being scrap merger

Editorial Team
2 Min Read


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Dive Temporary:

  • Saint Peter’s Healthcare System and Atlantic Well being deserted plans to merge on Monday, citing impacts of the “quickly evolving healthcare panorama nationally.”
  • The New Jersey-based well being programs first introduced plans to mix in January final yr and signed a definitive settlement to merge in June 2024. 
  • The programs shared scant particulars about why the deal fell aside. Nonetheless, in a joint assertion issued Monday each Atlantic President and CEO Saad Ehtisham and Saint Peter’s President and CEO Leslie Hirsch known as the deal’s finish disappointing.

Dive Perception:

The proposed deal would have joined Atlantic’s greater than 550 websites of care, together with eight hospitals, with Saint Peter’s single, 478-bed hospital and different outpatient services.

The scuttled deal marks the second failed merger for Saint Peter’s lately. The New Brunswick well being care system and RWJBarnabas Well being sought to merge in 2020. Nonetheless, the well being programs known as off the merger in 2022 after the Federal Commerce Fee sued to dam the deal, alleging it will cut back competitors.

Healthcare mergers and acquisitions have been depressed this yr relative to 2024. Through the second quarter, simply eight transactions have been introduced — the bottom quarter since a minimum of 2017, in response to information from Kaufman Corridor.

The consultancy attributed a number of the dip in exercise to enterprise challenges, in addition to uncertainty about federal and state insurance policies. Whereas the consultancy hoped to see a rebound in M&A throughout the again half of 2025, it made that prediction contingent upon suppliers’ sense of stability.

As an alternative, the trade has been hit by continued coverage pressures since July, together with looming Medicaid cuts, tariffs on prescription drugs, hikes to charges for H-1B visa functions and a authorities shutdown as lawmakers face the expiration of Inexpensive Care Act subsidies. 

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