The healthcare system finalized a merger on Tuesday with the University of Pennsylvania Health System (UPHS), more popularly known as Penn Medicine. The New Jersey-based organization will now be known as Penn Medicine Princeton Health.
The two health organizations first announced that they were considering a merger in July 2016. They finally inked the merger deal in December 2016. The merger was delayed for more than a year while regulatory bodies in New Jersey and Pennsylvania approved the agreement. Federal regulators also had to give their stamp of approval to the agreement.
As part of the merger, the organization’s main hospital, the University Medical Center of Princeton, will be renamed the Penn Medicine Princeton Medical Center. The hospital is recognized by the US News and World Report as a regional leader in hip replacements, knee replacements and in treating heart failure.
Princeton Health, which was carrying around $300 million in debt, has been shopping for a new partner to help inject some cash into its coffers since 2015. After considering 17 different potential partners, the company’s board of trustees decided to merge with Penn Medicine. As part of the agreement, Penn Medicine will absorb Princeton’s debt.
The new merger has connected Princeton Health with Penn Medicine’s five-hospital network and numerous outpatient clinics. In 2017, the US News and World Report named Penn Medicine’s hospitals as the best hospitals in Pennsylvania. The online magazine also ranked Penn Medicine as the tenth best hospital in the United States. The company’s main hospital, the Hospital of the University of Pennsylvania in West Philadelphia, is the oldest teaching hospital owned by a university in the United States.
Princeton Health was founded in 1919. In addition to its 341-bed hospital in Plainsboro, the healthcare organization also features more than 20 locations that offer everything from outpatient rehabilitation to behavioral therapy. The company has around 3,000 employees and more than 1,000 physicians. The two companies assured their employees that there would no layoffs as a result of the deal.