A Hawaii health system and payer plan to affiliate under a new nonprofit parent, and a New Jersey system signed a definitive agreement to acquire its 15th hospital.
Here are two hospital M&A moves that Becker’s reported during the week of Jan. 5:
1. Honolulu-based Hawaii Pacific Health and Blue Cross Blue Shield licensee Hawaii Medical Service Association announced Jan. 7 that they plan to affiliate under a new nonprofit parent organization, One Health Hawaii.
Hawaii Pacific Health President and CEO Raymond Vara said the affiliation has “the sole intent of creating an affordable, sustainable, high-quality, accessible healthcare system for the people of Hawaii.” He said savings over the years could reach “billions of dollars.”
Mr. Vara said the companies will largely operate as they normally do but will work to achieve efficiencies through alignment, while consolidating some administrative services without a reduction in workforce. He estimated the approval process could take six to 18 months.
2. West Orange, N.J.-based RWJBarnabas Health and Englewood (N.J.) Health on Jan. 5 signed a definitive agreement under which Englewood would become part of RWJBarnabas Health.
Under the agreement, RWJBarnabas Health would make approximately $500 million in capital investments in Englewood Health to support expanded outpatient services and community health programs, as well as other strategic investments in 2026 and beyond.
If approved, Englewood would become RWJBarnabas’ 15th hospital.
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