As expected Princeton Healthcare System, the nonprofit group that runs the University Medical Center of Princeton at Plainsboro and several other facilities, will become part of the University of Pennsylvania Healthcare System. This week Princeton Healthcare CEO Barry Rabner and University of Pennsylvania Health System CEO Ralph Muller formalized the agreement in a press conference at the Plainsboro campus. The deal is still pending state and federal approvals.
The merger was described as a “membership swap” between the two nonprofit organizations rather than a sale, with Penn taking over all of PHS’s assets as well as the $300 million debt it incurred in building the new hospital in 2012.
In July, when the merger was first proposed, Rabner said doctors would continue to refer patients to other care providers both inside and outside of the healthcare system, but that doctors would be able to better share medical records with those inside of Penn. Penn is already operating a maternal fetal service at UMCPP.
Rabner also said he did not expect any of PHS’s 3,000 employees to be laid off because of the merger, including himself. He will remain in charge of UMCPP under the new management structure.