Both health systems issued news releases announcing the deal, but neither elaborated on what kind of transaction, such as a merger or acquisition, would result. Financial terms of the deal were not disclosed. Geisinger and AtlantiCare executives will now undergo due diligence over the next nine to 12 months to reach a definitive agreement.
AtlantiCare President and CEO David Tilton said in a news release his one-hospital integrated system has been searching for a partner for the past year and ultimately chose Geisinger because it is viewed as a “national model for innovation and value.” Geisinger President and CEO Glenn Steele Jr., MD, PhD, said the transaction will help Geisinger enhance population health initiatives.
Geisinger recently received approved from Pennsylvania state officials to move forward with its acquisition of Lewistown (Pa.) Hospital. Geisinger is also in the process of affiliating with Holy Spirit Health System in Camp Hill, Pa., with a final agreement expected early next year. If the Holy Spirit and AtlantiCare deals go through, Geisinger would have nine acute-care hospitals, a children’s hospital and a heart hospital.
More Articles on Hospital Transactions:
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