Edison, N.J.-based Hackensack Meridian Health will bear the full cost of operating its joint medical school with South Orange, N.J.-based Seton Hall University, which is scheduled to open in July, according to nj.com.
In a joint statement obtained by nj.com, the organizations confirmed, "Hackensack Meridian Health is taking on the financial responsibility of operating the School of Medicine beginning July 1, 2018."
A spokesperson for Seton Hall told nj.com via email as the medical school project proceeded, it became evident to officials the organizations' partnership structure would need to change.
"From the beginning, Seton Hall administrators knew that the opening of a new school of medicine and the creation of a new Interprofessional Health Sciences campus would be incredibly complex projects, requiring tremendous investment and coordination with our partners at Hackensack Meridian Health," the spokesperson said. "As the process continued to evolve, it became increasingly clear that the original structure of the partnership needed to be revised."
The new arrangement will not affect the medical school's inaugural class, who are set to begin classes at the Nutley and Clifton, N.J.-based institution July 1. The spokesperson said Seton Hall will maintain its academic responsibilities and will issue diplomas to students upon graduation.
The shift in structure will also be reflected in the institution's new name, Hackensack Meridian School of Medicine at Seton Hall University. When the medical schools received preliminary accreditation from the Liaison Committee on Medical Education in February, the school was named the Seton Hall-Hackensack Meridian School of Medicine.
Seton Hall officials declined to share the institution's initial financial commitment to the medical school, and declined to explain how much the university would spend as part of the new arrangement, according to nj.com.
News of the updated partnership arrangement comes roughly one week after Hackensack Meridian Health's board of trustees voted to establish a $100 million endowment fund to provide scholarships to students.