Cooper and Cape Regional reach definitive agreement to merge

Cooper University Health Care and Cape Regional Health System said Tuesday that they had finalized their plan to merge. The two nonprofit health systems had announced a preliminary agreement in December.

Combined, the two systems would have more than $2.2 billion in annual revenue, two hospitals with more than 900 licensed beds, and more than 10,000 employees, Cooper and Cape Regional said in a news release.

They said it could take a year to obtain the regulatory approvals needed to complete the deal.

Cooper is far larger than Cape Regional, with $1.8 billion in revenue in 2021, compared to $177 million for Cape Regional the same year. Last year’s results are not yet available.

Moody’s Investors Service in January upgraded Cooper’s credit rating to A3 from Baa1, citing the agency’s expectation that profitability and cash reserves will stay strong even as Cooper spends on expansions such as building a three-floor outpatient center in a former Sears at Moorestown Mall.

The planned deal with Cape Regional was not considered in that upgrade, but will be taken into account as it gets closer to completion.