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Health systems say alignment will help meet goals of health care reform

Jessica Perry//June 29, 2012

Health systems say alignment will help meet goals of health care reform

Jessica Perry//June 29, 2012

Holy Redeemer Health System and Abington Health have signed a letter of intent to create a new regional health system in New Jersey and Pennsylvania adhering to principles outlined in President Barack Obama‘s health care reform, which was

Holy Redeemer Health System and Abington Health have signed a letter of intent to create a new regional health system in New Jersey and Pennsylvania adhering to principles outlined in President Barack Obama‘s health care reform, which was upheld by the U.S. Supreme Court on Thursday.

“Under health care reform, many quality improvements depend on enhanced coordination of care, which in turn relies upon closer alignment between health systems, physicians and other providers,” Robert M. Infarinato, chair of Abington, Pa.-based Abington Health, said in a statement. “We believe this partnership will facilitate the collaboration that will help both organizations move toward shared goals.”

According to the boards of both organizations, the new parent system will adopt care models designed to reduce incidents involving disease and infection, and provide more opportunities for innovative care by investing in advanced technology. Both health systems expect to overcome the issue of declining reimbursement by providing more efficiently delivered care.

“We believe both organizations have a fiduciary responsibility to ensure that we are meeting the needs of the communities we serve in the most effective way possible,” William R. Sasso, chair of Huntingdon Valley, Pa.-based Holy Redeemer — which serves 11 counties in New Jersey — said in a statement. “Accomplishing this will require health systems to actively reach beyond their own walls to keep pace with the evolving health care environment.”

Sasso said a definitive agreement will be signed after a three-month due diligence period enacted by the letter of intent, and the regulatory and approval process is expected to be completed by spring 2013.

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