Abington (Pa.) Health and Philadelphia-based Jefferson University Hospitals have reached a definitive agreement to merge into a new organization, led by Steve Klasko, MD, MBA, president and CEO of Jefferson.
Abington and Jefferson began their due diligence to merge in November 2014. The combined enterprise, the name of which was not specified, will include five hospitals, 3,370 physicians and nearly $3 billion in revenue.
A shared governance model outlined in the definitive agreement involves equal representation from Jefferson and Abington on a newly established board. There will be two trustees who have no previous relationship with either organization.
The following executives have been named for the new system:
· Steve Klasko, MD, MBA, president and CEO
· Laurence M. Merlis, senior executive vice president and COO
· Anne Docimo, MD, MBA, senior executive vice president and CMO
· John J. Kelly, MD, MBA, senior executive vice president and chief clinical officer
"We believe this will be a precedent-setting model, defined by shared governance and the first large scale urban-suburban hub and hub model," said Dr. Klasko. "It will create tremendous opportunities for us in population health and healthcare delivery, as well as in education and research."
The final step in the process is for the organizations to obtain the necessary state and federal regulatory approvals, which the organizations anticipate later this year.