Princeton HealthCare System (PHCS) and the University of Pennsylvania Health System (Penn Medicine) announced they have signed a letter of intent to pursue a partnership.
PHCS announced in June 2015 that it would begin evaluating partnership opportunities to ensure its continued success in the future. Since then, PHCS officials considered 17 potential partners, according to a press release from PHCS.
In choosing to pursue a partnership, PHCS considered the organizational capabilities which have enabled Penn’s Perelman School of Medicine consistently to rank among the top five medical schools in National Institutes of Health (NIH) funding and the Hospital of the University of Pennsylvania (HUP) to be recognized as an Honor Roll Hospital in the US News & World Report Best Hospitals ratings for nearly 20 years. The leadership of PHCS anticipates that these significant capabilities will be brought to bear on PHCS to advance the organization’s development.
The announcement is a preliminary step. The two organizations will now conduct due diligence and negotiate definitive agreements. This process is expected to take several months, during which the two systems are able to negotiate and finalize definitive agreements. They will then seek regulatory approvals, a process which could take up to a year to complete.