Abington Health and Holy Redeemer Health System have announced their intent to merge into a new regional Pennsylvania health system.
Abington Health includes Abington Memorial Hospital in Abington and Lansdale Hospital in Hatfield township. Holy Redeemer is a Catholic health care provider serving southeastern Pennsylvania and 11 counties in New Jersey.
Abington is rated at A by both Standard & Poor’s and Fitch Ratings and has more than $300 million of outstanding rated debt. Holy Redeemer is rated Baa2 by Moody’s Investors Service, and BBB-minus by both S&P and Fitch. It has about $86 million of outstanding rated debt.
“We believe this partnership will facilitate the collaboration that will help both organizations move toward shared goals,” said Abington Health’s chair Robert Infarinato.
A three-month period of due diligence is the next step in the process, followed by the signing of a definitive agreement. Regulatory and other approvals will also be required.
The process would be complete by early spring.