Kennedy Health and Jefferson Health announced the signing of a definitive merger agreement, the second step in a deal announced in January, the two tax-exempt health systems said Tuesday.
Kennedy, which has hospitals in Cherry Hill, Stratford, and Washington Township, will continue its academic and clinical affilations with with the Rowan University School of Osteopathic Medicine.
The definitive agreement with Kennedy came just weeks after Thomas Jefferson University, the parent entity of Jefferson Health, completed its acquisition of Aria Health, which has two hospitals in Northeast Philadelphia and one in Bucks County.
In terms of revenue, Kennedy are Aria are similarly sized. Kennedy, with 607 licensed beds, had $528.35 million in total revenue last year. Kennedy's net income was $30.8 million in 2015. Aria has 485 beds and had $580 million in revenue in the year ended June 30, 2015.
Jefferson and Kennedy said they will complete a $200 million project at Kennedy's Cherry Hill campus adding an enclosed parking facility, a medical office building and an atrium lobby in phase one and a new patient tower in phase two.
Plus, planning will continue for a new patient tower and enclosed parking garage in Washington Township. No cost estimate was available, a spokeswoman said.