ChristianaCare, Virtua drop plans to create $6B health system

After initially saying they wanted to explore a unique opportunity to create a new health system, ChristianaCare and Virtua Health say they are dropping the plans.

ChristianaCare, based in Wilmington, Delaware, and Virtua Health, based in southern New Jersey, described it as a mutual decision. They announced last week that they would remain separate.

“After thoughtful evaluation, both organizations have determined that they can best fulfill their missions to serve their communities by continuing to operate independently,” the systems said in a joint statement. “Each health system remains committed to providing high quality, compassionate care and advancing the health and well-being of the patients and communities they serve.”

The two Delaware Valley systems announced in July that they were exploring an intriguing partnership. ChristianaCare and Virtua said they wanted to create a regional non-health system that would serve patients in New Jersey, Delaware, Pennsylvania and Maryland.

They said they were co-founding a new system, with 600 sites of care and nearly 30,000 employees. The new entity would have $6 billion in revenue; ChristianaCare and Virtua each have about $3 billion in revenue.

Janice E. Nevin, MD, president and chief executive officer of ChristianaCare, said in July that she was excited about the prospect of building a new system with Virtua.

“At a time of great uncertainty in health care, ChristianaCare and Virtua Health have the foresight and courage to explore what is possible,” Nevin said in a statement.

Dennis W. Pullin, president and chief executive officer of Virtua Health, expressed similar enthusiasm in July.

“We see this as a unique opportunity to shape the future of care in this region with innovation and intention,” Pullin said in July. “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.”

Now, ChristianaCare and Virtua won’t be moving ahead with the creation of a new health system.

Many health system partnerships involve a financially weaker system aiming to join forces with an organization on more solid footing, but both ChristianaCare and Virtua have enjoyed strong reports in recent years.

ChristianaCare operates three hospitals with a total of 1,430 beds, along with a host of outpatient facilities. Christiana has announced plans to invest $865 million to expand access to care in Delaware. The system is also teaming with Atlas Healthcare Partners to build a network of ambulatory surgery centers.

ChristianaCare enjoys an “AA+” rating from S&P Global, its top rating in the nonprofit healthcare sector. S&P hailed ChristianaCare’s “exceptional balance sheet” in a May 2025 report, but also pointed to the system’s relatively small size and a lack of revenue diversity.

Virtua Health, with headquarters in Marlton, N.J., operates five hospitals with 1,492 beds, along with other healthcare locations. Virtua received an upgrade from Fitch Ratings in October, moving from “AA-” to an “AA” rating.

Virtua has recorded "several years of strong and stable operating performance after its successful integration of the Lourdes Health System,” Fitch says. Virtua acquired Lourdes and its two acute care hospitals in 2019.

Two New Jersey health systems also recently dropped their merger plans.

Atlantic Health and Saint Peter’s Healthcare System discussed plans to merge for nearly two years, but they said in October that they have abandoned those plans. In a joint statement, they said they made the decision after evaluating the “rapidly evolving health care landscape nationally and its impact on hospitals and health systems across the country.”