Representatives of CentraState Healthcare System, Freehold Township, and Atlantic Health System, Morristown, have signed a letter of intent to create what they are calling a unique model for health system co-ownership.
Upon completion of this expanded partnership, Atlantic Health will become the majority corporate member in CentraState and CentraState will join the Atlantic Health System network of care, according to a press release.
Under the new model, both systems will hold seats on a single CentraState governing board, each with specific rights and responsibilities.
This next step in the joining of these organizations will immediately benefit patients, physicians and caregivers in the communities served by CentraState by strengthening its integrated clinical services, physician network and infrastructure through significant capital investments, outlined in a five-year plan endorsed by both systems’ boards, according to the press release.
The CentraState board and leadership team, led by Centrastate President and CEO John T. Gribbin, will continue to oversee system operations and ensure the continued advancement of its mission to enhance health and well-being through the compassionate delivery of quality health care, according to the press release.
Earlier this year, CentraState and Atlantic Health expanded oncology and neuroscience care for central New Jersey residents through a clinical affiliation that has improved access to nationally recognized specialists and enhanced coordination of clinical and research activities, according to the press release.
“After two years of study, we invited Atlantic Health System to be a co-member of CentraState because we firmly believe they share the values, philosophy and commitment to community that is the hallmark of CentraState,” Gribbin said. “Our organizations align in mutually beneficial ways, with the constant focus on a common culture of commitment to our patients, physicians and employees.”
“We are thrilled to partner with CentraState to support their longstanding commitment to the community and make this investment in the health and well-being of New Jersey’s residents and families,” said Brian Gragnolati, president and CEO, Atlantic Health System.
“Having worked closely over the past few years with the CentraState team, we feel fortunate for this opportunity to combine our talents and resources to deliver high quality, affordable and accessible care for patients across the state,” he said.
Both organizations will now engage in a due diligence process, working toward a definitive agreement which will define the specifics of their future relationship. Approvals will be necessary from state and federal officials before the transaction can be considered complete, according to the press release.