Geisinger Health System will extend its reach eastward into New Jersey as it absorbs the Atlantic City-based integrated health system AtlantiCare into its organization Oct. 1.
The deal, almost two years in the making, won approval earlier this month from the New Jersey Superior Court's Chancery Division.
Danville, Pa.-based Geisinger recently reported an operating surplus of $159.8 million on revenue of $4.6 billion for its fiscal 2015, which ended June 30. AtlantiCare's revenue for 2014 was $805 million.
Geisinger CEO Dr. David Feinberg said joining the two systems will help advance population health efforts while improving quality and enhancing care.
The two systems signed a letter of intent to form a unified system in November 2013 as AtlantiCare had sought to partner with another organization to create the scale it felt was needed to adapt to healthcare reform. This was followed by an agreement signed May 27, 2014, which was approved Sept. 16.
The court's approval came with strings attached. AtlantiCare was ordered to implement a "comprehensive communication campaign" to address concerns raised in public hearings, including a potential loss of local jobs, continued local autonomy and continuation of charity-care policies.
In New Jersey, the system will operate as AtlantiCare, a member of Geisinger Health System. Representatives from each organization will sit on the board of directors of each other's foundation. No financial terms have been disclosed.
Geisinger's growth in other areas has included the launch of xG Health Solutions, an independent for-profit consulting company; the acquisition of Holy Spirit Health System, Harrisburg, Pa., which reported $364.1 million in fiscal 2014 revenue; the acquisition of PrimeMed, a Scranton, Pa.-based multispecialty medical group which was purchased for $46.5 million; and the Danville Ambulance Service will soon be merging with Geisinger affiliate Holy Spirit EMS.