ChristianaCare and Virtua Health are exploring a potential merger that would yield an eight-hospital nonprofit regional health system spanning 10 New Jersey, Delaware, Pennsylvania and Maryland counties.
The systems have signed a nonbinding letter of intent to explore the deal, they announced Wednesday, but did not give a timeline for when the combination could be executed. The resulting entity would have almost 30,000 employees, more than 600 sites of care and over $6 billion in annual revenues.
“At a time of great uncertainty in health care, ChristianaCare and Virtua Health have the foresight and courage to explore what is possible,” Janice Nevin, M.D., president and CEO of ChristianaCare, said in the announcement. “We are excited to take this bold step to double down on our mission, multiply our excellence and ensure our legacy of high-quality care in our local communities for generations to come.”
“Together, we aim to create an integrated regional health system built on human connection, clinical excellence and a deep commitment to all people in the communities we serve,” Virtua Health President and CEO Dennis Pullin said.
The systems will now enter a due diligence period as they negotiate a definitive agreement and engage regulators. They said day-to-day operations will continue and remain separate during the process.
Though the announcement acknowledges impending government funding cuts and the financial difficulties many hospitals face, neither organization appears to be pursuing the deal for a financial lifeline.
Wilmington, Delaware-based Christiana Care hosts three hospitals with 1,430 beds and has teaching relationships with the Sidney Kimmel Medical College of Thomas Jefferson University and the Philadelphia College of Osteopathic Medicine. In its most recently reported fiscal year (ended June 30, 2024), the nonprofit reported $3.1 billion in total operating revenues and other support, a $126.2 million operating income (4.3% operating margin) and a $448.5 million bottom line.
Marlton, New Jersey-based Virtua Health runs five hospitals with 1,492 total beds and has its own academic relationships with Rowan University, Penn Medicine and the Children’s Hospital of Philadelphia. During its latest fiscal year (ended Dec. 31, 2024), the organization logged $3.2 billion total revenue, a $195 million operating income (6.4% operating margin) and a $285.2 million bottom line.
The announcement outlined both organizations’ embrace of “unique care models” such as hospital-care-at-home as well as their shared goal of more personalized and easier to navigate care. They said their arrangement includes commitments to “create more convenient access to urgent, primary and behavioral healthcare” as well as to improve maternal and natal health in the area. The pair also said they intend to continue educating and developing a “future-ready” and sustainable healthcare workforce.
“Our vision for this new health system—when Medicare and Medicaid are facing cuts and many hospitals are struggling to stay open—gives me hope and excitement for our future and for the health of our neighbors,” ChristianaCare Health System board Chair George Foutrakis said in a statement.
Hospital merger and acquisition activity has been somewhat slow since the start of the new year, with strategic divestitures and financial distress comprising an outsized share of transactions announced in 2025. Hospital dealmaking is expected to pick up as federal healthcare policy becomes less uncertain.