The University of Pennsylvania’s Penn Medicine acquired the University Medical Center on Route 1 and the rest of the Princeton HealthCare System affiliates, the two sides announced this week.
The deal, which had to go through regulatory approval, is part of a continuing consolidation in the health-care field. Penn Medicine, in recent years, has acquired hospitals beyond Philadelphia, including in Chester and Lancaster counties, Pennsylvania.
“This kind of growth is happening around the country,” said Ralph W. Muller, the chief executive officer of the University of Pennsylvania Health System, during a conference call Tuesday.
The hospital was renamed Penn Medicine Princeton Medical Center.
The decision by Princeton HealthCare System, which has around 3,000 employees, to join Penn Medicine was an outgrowth of a “planning process” that Princeton officials two years ago undertook, a top official said Tuesday. They “concluded at the end of that period that being affiliated with a significant academic medical center would be in our interest,” said Barry S. Rabner, president and CEO of the now former Princeton HealthCare System, now known as Penn Medicine Princeton Health.
He said officials considered 17 “potential partners” and “concluded … that Penn Medicine would the best for us.”
Rabner said that in 2017, Princeton HealthCare System had its best year in its 99-year-old history “in terms of clinical outcomes, financial performance (and) patient satisfaction.”
“For us, that’s the perfect jumping off point for partnering and continuing to be successful in the future,” Rabner said of a marriage that took effect last week.
Penn Medicine is no stranger to the New Jersey market. Twenty five percent of its patients come from the state, Muller said.
“So we were a big provider of services to New Jersey going back years, just given our location,” he said.
Rabner noted that market research that his side had done showed that the majority of Central Jersey residents “who have needs that exceed the ability of our hospital, more than any other choose to go to Penn Medicine.”