Jefferson, Abington Complete Mega-Merger

A health care behemoth is born.
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The merger between Jefferson and Abington Health is a done deal, creating a local health care behemoth with 19,000 employees, 3,370 physicians, 2,482 nurses and 1,751 inpatient beds. It will also have five hospitals: Abington Memorial Hospital, Thomas Jefferson University Hospital, Jefferson Hospital for Neurosciences, Lansdale Hospital, and Methodist Hospital.

It’s likely the largest health care merger the Philadelphia region has ever seen.

The combined company (called simply Jefferson) has $106.3 million in public/private research funding, 3,908 students, nine outpatient centers and four urgent care centers.

The organization will have a board with equal representation from each organization. Even the chair seat will be split up: Jefferson’s Richard Hevner will be the chair for the first two years, and then be followed by Abington’s Stephen Crane.

The deal has been in the works since the two sides signed a letter of intent in October 2014.

“The speed of this merger’s closing is proof positive that we have closely aligned cultures built on a combined vision to reimagine health, health education and discovery to create unparalleled value and be the most trusted healthcare partner,” said Larry Merlis, executive vice president and chief operating officer of Jefferson Health.
The Philadelphia Business Journal reports that both organizations enter the merger on solid financial footing.
Jefferson generated revenues of $2.1 billion and a net income of $103 million in fiscal year 2014. Abington Health posted revenues of just under $774 million and a profit of $17.6 million.
Mergers, acquisitions and partnerships have been heating up in the regional health care sector. In 2014 alone, the University of Pennsylvania Health System teamed up with Lancaster General Health, and AtlantiCare Health System signed a merger agreement with Geisinger Health System.
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