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Published on June 27, 2012

Abington Health and Holy Redeemer Health System Announce Intent to Create Regional Health System

ABINGTON, PA (June 27, 2012)—Abington Health and Holy Redeemer Health System today are announcing their intention to create a new regional health system. The announcement is being made after the boards of both organizations, led by Robert M. Infarinato, chair of Abington Health, and William R. Sasso, chair of Holy Redeemer Health System, authorized the signing of a letter of intent at their respective meetings of the boards of trustees.

“We are very excited to pursue our shared vision to come together in a new healthcare organization to better serve the community,” said Infarinato. “Under healthcare reform, many quality improvements depend on enhanced coordination of care, which in turn relies upon closer alignment between health systems, physicians and other providers. We believe this partnership will facilitate the collaboration that will help both organizations move toward shared goals.”

By committing resources to improve the health of the community, including the vulnerable and poor, the new health system aspires to make a difference in the lives of its community members. The mutual goal is to provide high quality and efficient integrated health care, home care and life care to the communities served. The new organization is expected to provide greater opportunities for innovative care to better meet the increasing demands to maintain state-of-the-art technology, adopt new care models designed to keep communities healthy and reduce the incidence of disease.  Together, the organizations can expect to meet the challenges of declining reimbursement and changes in utilization while delivering superior outcomes and unparalleled experiences.

Said Sasso, “We believe both organizations have a fiduciary responsibility to ensure that we are meeting the needs of the communities we serve in the most efficient and effective way possible.  Accomplishing this will require health systems to actively reach beyond their own walls to keep pace with the evolving healthcare environment. By aligning these two reputable health systems, we will form a new parent company that will provide oversight and direction to enable both organizations to fulfill their mission and goals while respecting each other’s values and preserving Abington’s long-standing heritage and Holy Redeemer’s Catholic identity.”

The letter of intent is the first step in the process with a three-month period of due diligence to follow. A definitive agreement would then be signed at the conclusion of a successful due diligence period. Additionally, regulatory and other approvals would be required, and it is expected that the process would be complete by early spring.

“We have been in discussions for quite some time regarding a closer affiliation of our two health systems,” said Michael B. Laign, president and chief executive officer, Holy Redeemer Health System.  “By signing the letter of intent, and entering a period of due diligence, we can further explore how an alignment might look and how it will benefit our shared community.”

“This is the first of many steps toward creating a new parent organization that will bring opportunities for quality enhancements and greater efficiencies,” said Abington Health president and chief executive officer, Laurence M. Merlis.

Merlis added that the leaders of both organizations anticipate new growth opportunities and together will consider future relationships with other providers under the new parent organization.

Merlis will serve as the chief executive officer of the new organization. Laign will serve as chief operating officer. Sasso will serve as the chair of a new board of trustees and Infarinato will serve as vice chair. Infarinato will become chair after Sasso’s initial two-year term.

About Abington Health

Abington Health is the umbrella organization that encompasses its flagship hospital, Abington Memorial Hospital, in Abington and Lansdale Hospital in Hatfield Township. Abington Health also includes two convenient outpatient facilities, Abington Health Center – Schilling Campus in Willow Grove and Abington Health Center – Warminster Campus in Bucks County. Together, these facilities serve more than 44,000 inpatients, 131,000 emergency patients and over 560,000 outpatient visits annually.

More than 1,200 physicians are on staff at both Abington Memorial Hospital and Lansdale Hospital. Additionally, Abington Health Physicians is an employed network of primary care physicians and specialists.

Abington Health has more than 6,100 employees, making it one of the largest employers in Montgomery County.

About Holy Redeemer Health System

With an emphasis on providing a continuum of care, Holy Redeemer Health System remains true to the mission to care, comfort and heal that its sponsors, the Sisters of the Holy Redeemer, began in our region in 1924 – to provide high quality, compassionate care. Today, Holy Redeemer offers a wide range of healthcare and health-related services, including an acute care hospital, home health and hospice services, two skilled nursing facilities, personal care, a retirement community, low-income housing, an active living community and a transitional housing program for homeless women and children.

As an organization that cares for the total person, Holy Redeemer celebrates living through the HealthCare, HomeCare and LifeCare services provided by its more than 4,000 employees and 600 physicians.

With corporate offices in Huntingdon Valley, PA, Holy Redeemer Health System is a Catholic healthcare provider, serving southeastern Pennsylvania and 11 counties in New Jersey, from Union County south to Cape May County.

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