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The basics:

• Hackensack Meridian Health signs LOI for proposed Hunterdon Health acquisition
• Deal would mark HMH’s entry into Hunterdon County
• Hunterdon Health operates 178-bed teaching hospital
• Partners cite expanded care access, research and innovation

Hackensack Meridian Health is heading to Hunterdon County with its planned acquisition of Hunterdon Health.

The partners jointly announced June 22 signing a letter of intent toward a partnership between the two New Jersey healthcare systems.

Both mission-driven organizations, the parties say the proposed merger aims to enhance care for patients, expand access to services and accelerate innovation to transform health care. While there is yet a long road ahead, the boards of trustees of both systems have authorized moving forward.

Opened in 1953, Hunterdon Medical Center is a 178-bed teaching hospital. Hunterdon Health also boasts a network of more than 30 primary and specialty practices across Hunterdon, Somerset, Mercer, Warren and Morris counties.

Meanwhile, HMH holds distinction as the first and only top 20 national hospital from New Jersey, according to U.S. News & World Report 2025-26. The healthcare system comprises 18 hospitals, more than 500 care locations and over 40,000 team members.

The LOI follows the recent passing of the baton at Hunterdon Health, effective July 1. Upon the planned retirement of President and CEO Patrick Gavin, longtime employee Kristy Alfano will take over as interim president and CEO.

Scaling strengths

Alfano told NJBIZ Hunterdon Health took a thoughtful and deliberate approach to assess the potential partnership with HMH. Why now? She described the move as a kind of power play.

“[T]he organization is really in a position of strength both financially and from a quality perspective,” she explained. “So, it seemed like a perfect match to be able to try to find someone that matches our culture and aligns with us at a time that we’re looking for, not to be rescued, but actually to be able to help improve and complement an already strong system.”

Gavin noted increasing competition in Hunterdon County, from larger operators and those with deeper pockets. For Hunterdon Health, then, scale offers opportunity.

“That was one of the things that really moved us — while we’re completely successful … we’re probably one of five maybe or six independent health systems in New Jersey at this point and we’re probably the smallest of those.

“I think for the community, the time to make the move while we were strong … and we couldn’t be happier with Hackensack [as a partner].”

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HMH and Hunterdon Health say they will work toward establishing a comprehensive system focused on:

• Health outcomes
• Investment in clinical research
• Academic and community benefit programs
• Human-centered, accessible, affordable quality care

Making 1+1 equal three

Hackensack Meridian Health CEO Robert Garrett told NJBIZ the market stood out for a variety of reasons.

“Our mission at Hackensack Meridian is to transform healthcare. And that’s not just limited to communities or counties that we’re in right now. It’s really to transform healthcare across the state and beyond. And … we thought it was a great opportunity to really build on the successes of Hunterdon Health and on Hackensack Meridian Health.”

“This is a unique opportunity for two strong organizations to come together to have one plus one actually equal three,” Garrett added.

By expanding services and programs and investing in research and technology, the collaboration and acquisition aims to bring new offerings to residents, as well as deliver care closer to home.

“Because when you’re in places like Hunterdon, the services and programs at Hunterdon Medical Center are amazing,” Garrett noted. “But sometimes if somebody needs specialized services, they may have to travel long distances. We want to try to overcome that.”

Pointing toward their shared missions of putting patients and safety first, Garrett also described the northwestern county as a growing part of the state, which brings more demand.

For Hackensack Meridian, the latest news continues massive momentum in 2026.

In April, the system debuted a first-of-its-kind, $200 million transit-oriented health hub at Metropark in Iselin, along with a brand-new headquarters.

That’s on top of the plethora of investments coming online across the system. HMH started June celebrating the opening of a $40 million expansion targeting youth mental health services at Carrier Clinic. In January 2025, HMH revealed a partnership with Apollo Health in India. The agreement with that country’s largest private hospital network also centers on innovative health solutions.

Quality improvements

Speaking with NJBIZ earlier this year, Garrett said HMH’s strategy has consistently focused on organic growth and new partnerships. On the latter, he went on to note ongoing discussions with major health systems, as well as physician and medical groups.

“And we’re excited about that, because if some of those come to fruition, they will absolutely be transformative for our state,” Garrett said at the time.

HMH marks its 10th anniversary next week. As Garrett noted, the system has made four four hospital acquisitions since then, and the effects are clear.

“I can tell you that because they’re part of a system – they all were strong in their own right – but they got stronger over this last decade, both financially and most importantly from a quality perspective. All boats kind of rose here,” he said.

M&A movement

According to the Healthcare Financial Management Association, hospital M&A has surged in 2026.

HFMA reports a six-year high in mergers and acquisitions, which it attributes to clearer policies for participants.

Citing a Kaufman Hall analysis, the organization noted first quarter 2026 consolidation came in the highest it has since 2020. And looking ahead, Kaufman Hall Managing Director of Consulting Kris Blohm told HFMA the trend should continue for the remainder of the year.

“It’s largely, I think, an acceptance that there’s at least some more visibility into the near- and medium-term path forward,” Blohm said.

Hackensack Meridian Health and Englewood Health called off plans for a merger in 2022, after a U.S. appellate court ruled that Bergen County deal would reduce competition and increase costs for patients. (Englewood and RWJBarnabas Health have since announce plans to combine.)

In the present, regulatory and reimbursement changes are also pushing margins.

And those quality improvements extend beyond hospitals walls to HMH’s extensive care network.

“Sharing best practices out there is really an important part of a system. And if you can integrate a health system, I think the story’s out there over and over in American healthcare, that the quality does improve.”

New Jersey boasts 70 acute care hospitals, with Hunterdon Health the only such facility in Hunterdon County.

As the LOI marks just a step in a longer process, the organizations note no immediate changes are planned.

For Hunterdon Health, Alfano said HMH understands the value the target brings to the table as a partner, “and coming together is mutually, truly beneficial.” 

Added Garrett, “I just want to say that we’re … very grateful that Hunterdon has chosen Hackensack Meridian as its partner after a very thorough process, a very thoughtful process that spanned quite a bit of time. So we are very grateful and we’re excited about the future.”