Pennsylvania Had a Busy Year With Mergers and Alliances

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Many mergers took place during 2014, as many companies see partnerships as the best solution for the changes in healthcare. The following are some of the most notable mergers in the healthcare industry:

  • Jefferson Health System and Abington Health signed a letter of intent to merge in October.
  • Crozer-Keystone Health System maintained business with healthcare consulting firm, Kaufman, Hall & Associates, to assist it in exploring its options for potential alliances or partnerships.
  • In February, the University of Pennsylvania Health System announced that it was expanding its alliance with Lancaster General Health.
  • AtlantiCare Health System of South Jersey signed an agreement with Geisinger Health System of Pennsylvania, which stipulated that Geisinger will invest $62.5 million in AtlantiCare over a 5 year span.
  • Jefferson Health System disintegrated from its three partners into the independent boards of Thomas Jefferson University Hospitals, Main Line Health and Magee Rehabilitation Hospital.
  • In December, Einstein Healthcare Network sold its behavioral health hospital, the Belmont Center for Comprehensive Treatment, to Acadia Healthcare for $35 million.
  • Delaware Valley ACO (owned by Jefferson, Main Line Health and Magee and Holy Redeemer Health System) added a 5th hospital partner, when Doylestown Hospital joined them in September.
  • Nobile Health Alliance (formed by Crozer-Keystone, Abington Health, Aria Health and Einstein Healthcare Network) will offer a tiered health insurance plan to employees in 2015. Premier Orthopedics and Cardiology Consultants of Philadelphia joined the Noble Health Alliance.
  • Genesis Healthcare of Kennett Square, PA signed an agreement to merge with Skilled Healthcare Group Inc. of California to create a $5.5 billion long-term-care company with 95,000 employees and 500 nursing homes, assisted-living facilities and rehab centers in 34 states.
  • Independence Blue Cross and Davita Healthcare Partners formed Tandigm Health, which aims to help primary care physicians through analytical and real-time data resources.
  • Cooper University Health Care and AmeriHealth New Jersey created a co-branded insurance product that provided health coverage to 6,500 people and is looking to expand further.

Summary by MedicalGroups.com

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