ChristianaCare and Virtua Health have ended merger talks
The nonprofits, the largest in South Jersey and the largest in Delaware, disclosed in July that they had signed a preliminary agreement to join forces.
ChristianaCare and Virtua Health have ended merger negotiations that would have created a healthcare system with more than $6 billion in annual revenue and business in four states, the two nonprofits announced Thursday.
The nonprofits, the largest in South Jersey and the largest in Delaware, had disclosed a preliminary agreement to join forces in July. ChristianaCare and Virtua did not share specific reasons for dropping the idea.
They issued identical statements: “After thoughtful evaluation, both organizations have determined that they can best fulfill their missions to serve their communities by continuing to operate independently.”
It wasn’t obvious to industry insiders what advantages combining the two systems would have brought other than more revenue and the potential for some relatively small savings from greater scale.
Both systems are financially solid. Virtua has a AA- credit rating from Standard & Poor’s. The S&P rating for ChristianaCare is two notches higher, at AA+.
They have been expanding on their own.
Virtua acquired Lourdes Health System in New Jersey in 2019, and is now spending hundreds of millions to renovate two of its hospitals.
ChristianaCare explored an acquisition of Crozer Health in 2022, but decided not to go through with the deal. It won a May bankruptcy auction with a $50.3 million bid to assume Crozer leases at five outpatient locations in Delaware County. It has since opened 15 medical practices at those locations.
ChristianaCare previously acquired the shuttered Jennersville Hospital in Chester County and turned it into a micro-hospital. It plans two more micro-hospitals for Delaware County.
The five-hospital Virtua system had $3.24 billion in revenue last year. ChristianaCare, with three full-scale hospitals, had $3.3 billion in revenue in the year that ended June 30, 2025.