ChristianaCare and Virtua Health have pulled the plug on their merger plans, jettisoning a deal that would have created a health system with a combined $6.3 billion in annual revenue.
The health systems confirmed in a joint statement that they have mutually chosen to end the nonbinding letter of intent for the merger, which was signed in July 2025.
“After thoughtful evaluation, both organizations have determined that they can best fulfill their missions to serve their communities by continuing to operate independently,” they said. “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.”
If the deal had come together, it would have created a health system that spanned four states, serving counties in New Jersey, Delaware, Pennsylvania and Maryland. The combined entity would have included eight hospitals and more than 600 total sites of care.
The combined organization would also have included 30,000 employees.
After announcing the merger plans over the summer, the health systems engaged in a due diligence window to hash out a more definitive agreement and engage with regulators about the deal.
Healthcare dealmaking largely cooled off through 2025, but analysts at PwC said in a report released earlier this week that they anticipate a rebound in wheeling and dealing next year, backed by investments in artificial intelligence and a policy environment that encourages buyers to move quickly.
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