CentraState Healthcare System and Atlantic Health System said Monday they signed a letter of intent to create a unique model for health system co-ownership.

Upon completion of this expanded partnership, Atlantic Health will become the majority corporate member in CentraState and CentraState will join the Atlantic Health System network of care.

Under the new model, both systems will hold seats on a single CentraState governing board, each with specific rights and responsibilities.

This next step in the joining of these two organizations will immediately benefit patients, physicians and caregivers in the communities served by CentraState by strengthening its integrated clinical services, physician network and infrastructure through significant capital investments, outlined in a five-year plan endorsed by both system’s boards.

The CentraState board and leadership team, led by President and Chief Executive Officer John Gribbin, will continue to oversee system operations.

“After two years of study, we invited AHS to be a co-member of CentraState because we firmly believe that they share the values, philosophy and commitment to community that is the hallmark of CentraState,” said Gribbin. “Our organizations align in mutually beneficial ways, with the constant focus on a common culture of commitment to our patients, physicians and employees.”

Both organizations will now engage in a due diligence process, working toward a definitive agreement, that will define the specifics of their future relationship. Approvals will be necessary from state and federal officials before the transaction can be considered complete.

Earlier this year, CentraState and Atlantic Health expanded oncology and neuroscience care for Central Jersey residents through a clinical affiliation that improved access to nationally recognized specialists and enhanced coordination of clinical and research activities. The affiliation expanded upon the systems’ existing relationship in the Healthcare Transformation Consortium, designed to provide broader and more affordable health insurance to employees across New Jersey.

This latest venture between two of the state’s leading health systems is a clear reflection of their shared mission and values. Both are grounded by strong ties to their local communities, along with longstanding commitments to clinical excellence, engaged physician leadership, and value-based strategies to improve access to affordable health care. Both systems also take great pride in their workplace cultures.

“We are thrilled to partner with CentraState to support their longstanding commitment to the community and make this investment in the health and well-being of New Jersey’s residents and families,” said Atlantic Health President and CEO Brian Gragnolati. “Having worked closely over the past few years with the CentraState team, we feel fortunate for this opportunity to combine our talents and resources to deliver high quality, affordable and accessible care for patients across the state.”