The University of Pennsylvania Health System, also known as Penn Medicine, has finalized its acquisition of the Plainsboro, New Jersey-based Princeton HealthCare System (PHCS) extending its reach into the Garden State.
The deal, first announced in Dec. 2016, was Penn Medicine’s first expansion beyond Pennsylvania’s borders. All PHCS facilities, including its flagship University Medical Center of Princeton, will be rebranded with Penn Medicine logos and names. This also includes all PHCS affiliates like Princeton House Behavioral Health, Princeton HomeCare and the Princeton Medicine physician network.
“The joining together of Princeton HealthCare System and Penn Medicine represents an exciting new chapter in Penn Medicine’s growth. PHCS has an impressive reputation for providing high-quality care to patients close to home, and innovating in many types of community-based health and wellness initiatives,” Ralph Muller, CEO of the University of Pennsylvania Health System, said in a press release. “Now, we can offer a powerful partnership to patients throughout the region PHCS serves, continuing the services they already depend on, coupled with access to world-class care for complex conditions and innovative clinical trials available at Penn Medicine.”
PCHS employs nearly 3,000 people, including 1,100 physicians. By contrast, the larger Penn Medicine employs more staff members and physicians just at the Hospital of the University of Pennsylvania.
The deal doesn’t involve any payment or sale of assets, according to the Philadelphia Business Journal, and requires Penn Medicine to commit to investing in PHCS, including $200 million for “strategic capital projects” benefitting the PHCS service area through 2023. Additionally, the PHCS board will retain the right to approve any facility closure through 2024.
“Our Trustees engaged community members, physicians and employees in a thorough, two-year process to evaluate and select a partner,” said PHCS board chair Kim Pimley. “In Penn Medicine, we found a partner that shares our values. Together, we can make world-class care more accessible to the people in the communities we serve. We are delighted to begin a shared future with Penn Medicine.”