Hackensack Meridian, Hunterdon Health clinch deal with $230M investment

Following an exploratory announcement in June, Hackensack Meridian Health and Hunterdon Health have signed a definitive agreement to merge.

The partners announced the development Oct. 20. According to the healthcare providers, the deal includes $230 million to help improve access to care for local residents and fund the rollout of Epic. The boards of trustees and leadership from both entities approved and signed the agreement at HMH headquarters in Iselin Tuesday.

Following the letter of intent signed over the summer, the new agreement sets terms for both organizations as they seek regulatory approval for the combination.

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.

The definitive agreement includes several key commitments:

• $200 million capital investment
  HMH will invest $200 million in strategic capital projects to improve access to care, including investments in Hunterdon facilities, programs and its communities
• $30 million Epic investment
  HMH will fully fund the rollout of its Epic electronic health record across Hunterdon Health 
• Local governance and community voice
  For six years after closing, Hunterdon will keep local board oversight. A Hunterdon representative will join the HMH Board of Trustees, while Hunterdon representatives will also serve on other HMH boards and committees. A Hunterdon Community Advisory Committee will give local input on community health needs
• Locally donated funds stay local
  The Hunterdon Healthcare Foundation will continue as a separate organization and will honor donor intent
• Physician and medical staff continuity
  Hunterdon Medical Center will keep its own medical staff leadership and peer review. Meanwhile, Hunterdon Medical Group will remain an employment option for physicians for at least five years. Hunterdon Health’s clinically integrated network will continue for at least five years.
• Clinical growth
  The organizations will evaluate the expansion of clinical services and the ambulatory network in the Hunterdon region, along with a physician recruitment plan
• Accountability
  A joint committee with equal representation from Hunterdon and HMH will monitor HMH’s compliance with its key commitments

Keeping community-centered care in Hunterdon County

The move expands the New Jersey Hackensack Meridian’s reach into Hunterdon County for the first time.

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.

“Today we’re making real commitments to the people of Hunterdon County and the surrounding communities,” said Robert Garrett, CEO of Hackensack Meridian Health, adding that, “Hunterdon Health has a long history of excellent, community-centered care.”

Longtime Hunterdon Health employee Kristy Alfano took over as president and CEO at the western New Jersey system, effective July 1. Speaking with NJBIZ after revealing plans to explore the deal, Alfano said Hunterdon Health took a thoughtful and deliberate approach to the potential partnership. 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 … to be able to help improve and complement an already strong system.”

In the present, she said the agreement reflects months of careful work.

“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,” Alfano said. “Just as important, the agreement keeps local leadership and community input at the heart of how Hunterdon Health serves its neighbors.”

What’s next?

The HMH-Hunterdon merger is subject to customary state and federal regulatory reviews and approvals.

Meanwhile, both healthcare systems will continue to operate independently and Hunterdon Health’s current leadership team will continue to run the day-to-day there.

Good work

Hunterdon Health Foundation recently received a significant gift from Jack and Faith Cust to the Beaming Beyond Cancer Campaign.

The undisclosed contribution will go toward the renovation of Hunterdon Regional Cancer Center. In recognition of the generosity and commitment of the donors to the local community, the facility will be renamed the Jack and Faith Cust Cancer Center.

Faith is the former president of the Hunterdon Health Foundation Auxiliary. Additionally, the Custs are owners of HealthQuest, a local fitness club, and founders of Diamond Nation, a premier softball and baseball training facility. Other regional contributions from the Custs include to the Enclave apartment community and Courthouse Square, featuring the restoration and reopening of the historic Union Hotel in downtown Flemington.

Hunterdon Health Foundation will recognize Jack and Faith Cust for their altruism during its annual Crystal Evening reception Nov. 14 at SteelStacks in Bethlehem, Pa. More on the signature fundraiser is available here.

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