Drinker Biddle’s Health Care Team advised Thomas Jefferson University in its recent combination with Kennedy Health, which created a multistate health system with more than 27,000 employees and annual revenues of more than $5 billion. The deal was finalized on September 14, 2017, approximately 20 months after the initial letter of intent was signed.
Kennedy operates hospitals licensed for 607 beds, along with a home care division, a long-term and rehabilitation care center, and an extensive network of outpatient care centers and primary care and specialty physician practices. The New Jersey health system also serves as the primary teaching affiliate for the Rowan University School of Osteopathic Medicine. This combination extends Jefferson’s regional reach and will allow patients in South Jersey to have access to Jefferson’s clinical and research services.
Partners Gerry McCartin and Ken Vorrasi led the efforts on behalf of Jefferson, including due diligence, management of corporate and regulatory requirements, and negotiation of definitive agreements. Ken helped to obtain antitrust clearance from the Federal Trade Commission.
The deal continues Jefferson’s expansion, which has included mergers with Philadelphia University, concluded earlier this year, as well as mergers with Aria Health in 2016 and Abington Health in 2015. Drinker Biddle served as lead transactional counsel for Jefferson on each of those transactions.
Drinker Biddle’s Health Care Team represents hospitals and health systems with strategic affiliation transactions including pre-transaction counseling, due diligence, regulatory and antitrust reviews, negotiations and post-transaction integration. The team is actively advising on health care affiliations in New Jersey, Illinois, Pennsylvania, Georgia, Michigan, California, and other markets across the U.S.