Hackensack Meridian, Hunterdon pen merger agreement

An article from

Dive Brief:

• New Jersey-based nonprofits Hackensack Meridian Health and Hunterdon Health have inked an agreement to merge, the systems announced Tuesday.
• As part of the deal, HMH will invest $200 million into Hunterdon to improve its facilities and programs, and $30 million to roll out Epic’s electronic health record across Hunterdon’s care sites. Other financial terms of the deal were not disclosed.
• Hunterdon will keep local representation on its board for six years after the deal closes, according to the announcement. Hunterdon’s flagship hospital will also keep its medical leadership intact, and its medical practice and integrated network will continue for at least five years.

Dive Insight:

HMH is already New Jersey’s largest health system, with 18 hospitals, more than 500 outpatient sites and 41,000 employees in the state. Hunterdon will bring its flagship 184-bed hospital, Hunterdon Medical Center, to HMH’s network along with its more than 3,000 employees, and network of primary and specialty care practices. 

The two organizations first announced their intent to explore a merger in June. At the time, they said the aim of the partnership was to expand access to care and bolster research and innovation efforts. 

Now that both organizations’ boards have approved the agreement, the health systems will need to secure approval from state regulators and pass federal antitrust review. HMH and Hunterdon did not say when they expect the deal to close.

A Hunterdon representative will join HMH’s board of trustees, and Hunterdon leaders will serve on HMH boards and committees, according to the press release.

“Joining Hackensack Meridian Health will strengthen our ability to invest in our people, expand services, and bring new technology and specialty expertise to our region,” Kristy Alfano, president and CEO of Hunterdon, said in the press release.

Hunterdon has been financially stable in recent years, raking in more than $11 million in operating income last year, up from $1.7 million in 2024 after the system eased some labor pressures. The merger would offer Hunterdon the opportunity to scale, Alfano told local news outlet NJBIZ in June. It faces minimal competition in its geographical area, with the nearest hospital being a 30-minute drive away, according to credit ratings agency Fitch.

HMH faces tighter competition, holding about the same market share (around 30%, according to Fitch) in its service area as its main competitor, RWJ Barnabas Health, which has more than 700 locations across the state.

HMH has experienced steady revenue growth, reporting operating revenue of $9.8 billion last year, compared to about $9 billion the year prior. Fitch sees the acquisition as credit neutral, given Hunterdon is bringing strong finances to the table and would represent only about 5% of HMH’s total revenue. 

HMH has been expanding its footprint in New Jersey over the past year. It launched a new health and wellness center in April close to a New Jersey transit hub and opened a $40 million youth mental health facility in June.

Amid the merger and expansions, HMH is also experiencing a leadership change. Longtime CEO Robert C. Garrett is set to retire next summer, and HMH plans to name his successor in the first quarter of 2027.