Hackensack Meridian Health moves to merge with New Jersey hospital

Hackensack Meridian Health is already New Jersey’s largest health system, and the organization is poised to get a little bigger.

The New Jersey system has reached a definitive agreement to acquire Hunterdon Health, which operates a 184-bed teaching hospital, Hunterdon Medical Center, and a host of other clinics. Hunterdon Health is based in Flemington, New Jersey.

Hackensack Meridian has also said it plans to invest more than $230 million in improvements. The system operates 18 hospitals and more than 500 sites of care in New Jersey.

Robert C. Garrett, CEO of Hackensack Meridian Health, touted the system’s “real commitments” to residents of Hunterdon County.

"Hunterdon Health has a long history of excellent, community-centered care,” Garrett said in a statement. “By investing in facilities, technology, and clinical programs, we'll help ensure patients in this region can receive leading-edge care close to home, backed by the resources of our entire network. We look forward to welcoming Hunterdon Health's team members, physicians, and volunteers to the HMH family."

Retaining local leadership

Hackensack Meridian and Hunterdon said earlier this year that they were exploring a potential merger.

Under the planned merger, Hackensack Meridian said the system would invest $200 million in Hunterdon’s facilities and initiatives to expand access to care. The system also plans to spend an additional $30 million to add Epic’s electronic health record system to Hunterdon’s facilities.

It’s unclear when the two organizations expect to close the transaction. Federal and state regulators still must sign off on the merger.

Kristy Alfano, president and CEO of Hunterdon Health, said the agreement comes after months of review and work. She cited “a shared commitment” for patients and Hunterdon’s employees.

"Joining Hackensack Meridian Health will strengthen our ability to invest in our people, expand services, and bring new technology and specialty expertise to our region. Just as important, the agreement keeps local leadership and community input at the heart of how Hunterdon Health serves its neighbors,” Alfano said in a statement.

Hackensack Health said that Hunterdon will retain its medical staff leadership. Hunterdon will also maintain local board oversight for six years after the closing of the deal, and Hunterdon will have a representative on Hackensack Meridian’s board.

In August 2025, Fitch Ratings revised Hunterdon’s outlook from negative to stable, citing the system’s improved cash flow. Hunterdon holds 63% of the market share in its primary service area, with the nearest hospital 30 minutes away, and the system benefits from a patient population that has a high percentage of individuals with commercial insurance, according to Fitch.

Under the details of the merger agreement, Hunterdon Healthcare Foundation would remain a separate organization, with the funds raised locally staying in the area.

A busy period

The move comes amid a busy period of activity for Hackensack Meridian. In September, Hackensack Meridian announced that it had received a $125 million donation, which came from an anonymous donor. The system said the gift will be used to transform the Jersey Shore University Medical Center.

In addition, Garrett announced that he is planning to step down next year. He plans to retire effective June 30, 2027. Hackensack Meridian has set a goal of naming Garrett’s successor before the end of the first quarter of 2027. Garrett intends to serve as CEO Emeritus after the next CEO is named.

More hospitals and health systems have been pursuing mergers and acquisitions in recent months.

Through the first nine months of 2026, there have been 56 announced hospital mergers, according to data from Kaufman Hall, a healthcare consulting firm. Industry analysts say they expect the brisk pace of hospital mergers to continue.