Penn Medicine, Princeton HealthCare pursuing partnership
The Philadelphia region's largest health-care employer may be extending its reach farther into New Jersey. The University of Pennsylvania Health System, better known as Penn Medicine, announced Wednesday that it had signed a letter of intent to partner with Princeton HealthCare System.
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The Philadelphia region's largest health-care employer may be extending its reach farther into New Jersey.
The University of Pennsylvania Health System, better known as Penn Medicine, announced Wednesday that it had signed a letter of intent to partner with Princeton HealthCare System.
In a statement, Penn Medicine CEO Ralph Muller said the partnership would give central New Jersey residents access to Penn's world-class patient-care programs.
Susan Phillips, senior vice president at Penn Medicine, said details of the arrangement will be worked out over the next few months.
The deal, if approved by government regulators, could be finalized by the end of 2017.
"People are very excited," said Princeton HealthCare CEO Barry S. Rabner. "We've been working on this for several years."
Princeton HealthCare, which would become part of Penn Medicine, would retain autonomy over day-to-day operations and preserve its board of trustees, Rabner said.
The decision to partner with a larger institution came after long discussions about the future of health care that looked at how it would be paid for and delivered.
"Scale matters. We wanted a partner that really helps to contribute to the latest medical breakthroughs, holds clinical trials, and is equipped with cutting-edge technology so we can expand our clinical services," Rabner said.
Penn Medicine graduates are already on Princeton HealthCare's staff and several Penn physicians provide services under contract, he said.
Alan Zuckerman, director of Veralon, a health-care consulting firm headquartered in Philadelphia, said Princeton HealthCare would come out a winner.
Though it may give up some autonomy, it may be able to negotiate better insurance reimbursements, obtain capital at better rates, and gain access to a larger pool of medical expertise, he said.
The news comes as Penn Medicine competitor Jefferson Health anticipates its own New Jersey move. It has a pending deal with the 607-bed Kennedy Health System in Cherry Hill, Stratford, and Washington Township.
Princeton HealthCare, with 340 beds, has 1,200 physicians on staff and employs about 3,200 people. It operates the University Medical Center of Princeton and Princeton House Behavioral Health. In 2014, the system had $366 million in revenues.
Penn Medicine, with about 2,500 beds, employs 31,000 and operates five acute-care hospitals: Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, Pennsylvania Hospital, Chester County Hospital, and Lancaster General Hospital. In 2015, operating revenue topped $5.3 billion.
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Staff writer Tom Avril contributed to this article.