Two Trenton, N.J., hospitals expect to complete a full-asset merger by year-end, creating a single system with command over 49% of the market.
The Federal Trade Commission and state regulators have cleared the merger of 261-bed Helene Fuld Medical Center and 318-bed Mercer Medical Center. Each hospital will operate as a division of the new parent, called Capital Health System.
Separately, two northeast New Jersey health systems -- JFK Health Systems in Edison and Muhlenberg Regional Medical Center in Plainfield -- have approved a definitive agreement to merge. Officials plan to announce the deal this week.
The Trenton system is expected to have annual revenues of $200 million and employ some 3,000 people, at least initially. But officials expect to eliminate 150 full-time-equivalent positions within the first two years. "At this time, we think we can probably do it through attrition," said a Helene Fuld spokeswoman.
The merger is expected to generate administrative savings of 4% to 4.5% of revenues. Details on clinical consolidations and savings haven't been completed.
Mercer President Charles E. Baer will serve as chief executive officer of Capital Health; Helene Fuld's president and chief executive, Al Maghazehe, will be the system's executive vice president. A new governing body made up of board members from both hospitals will be led by Helene Fuld's chairwoman.
The merger is expected to close by Dec. 30.
In the other deal, JFK Health Systems and 261-bed Muhlenberg Regional will consolidate under a new parent corporation. JFK includes 380-bed JFK Medical Center and 92-bed JFK Johnson Rehabilitation Institute. The FTC and state regulators have cleared the deal.
Although there were no revenue estimates for the combined system, the American Hospital Directory reports that JFK Health and Muhlenberg had revenues of $289.6 million and $184.3 million, respectively, in the year ended Dec. 31, 1995.