Abington, Holy Redeemer to form regional health system

Abington Health and Holy Redeemer Health System are planning to form a new regional health system.
Abington Health and Holy Redeemer Health System are planning to form a new regional health system.
Posted: June 28, 2012

Abington Health and Holy Redeemer Health System said today they plan to join forces in a new regional health system.

The chief executives of the two systems said their boards had authorized them to sign a letter of intent that would allow them to pursue the formation of a new holding company under which both systems would operate.

Laurence M. Merlis, president and chief executive of Abington, would be CEO of the new entity. Michael B. Laign, CEO of Holy Redeemer, would be chief operating officer if the deal is consumated as projected next spring.

To facilitate the merger with Holy Redeemer, a Catholic health system, Abington has agreed that it would no longer perform abortions, Merlis said.

Abington is larger of the systems in Philadelphia's northern suburbs, with $783 million in revenue in the year ended June 30, 2011. During the same period, Holy Redeemer had $357 million in revenue.

Holy Redeemer had an operating profit margin of just 0.8 percent during fiscal 2011. Abington's was better, at 2.1 percent, according to bond documents.

comments powered by Disqus
|
|
|
|
|