By April 2013 — and in preparation for Obamacare — Abington Health will have acquired nonprofit North Penn Visiting Nurse Association.
Officials from both Abington Health and North Penn VNA signed a letter of intent Friday, Nov. 2.
The amount of purchase was not released.
Abington Health is the umbrella corporation that owns Abington Memorial Hospital and Lansdale Hospital.
According to The Philadelphia Inquirer, North Penn VNA's net income dropped from $626,993 to $277,787 in year ending June 30, 2011, as reported in its Form 990 tax return.
North Penn VNA had $6.7 million in revenue, as of June 30, 2011, according to the article.
The North Penn VNA employs about 100 nurses who provide home care and hospice.
"The leaders and staff of the North Penn Visiting Nurse Association have built a well respected organization dedicated to serving the home health needs of the greater North Penn region. We are excited to explore the opportunity to bring this organization to Abington Health as part of our strategy to form partnerships in preparation for the full implementation of the Affordable Care Act," said Abington Health President and Chief Executive Officer Laurence M. Merlis in a statement.
The acquistion means the VNA enables Abington Health to expand its home health services and service area.
Abington Health’s Home Health Department employs 200 professionals who provide home care and hospice to residents in parts of Bucks, Montgomery and Philadelphia counties, according to a press release.
In addition to hospice and home health care, the North Penn VNA also provides adult day services, a Chronic Care Management Program, Meals on Wheels, a pediatric clinic, Adult Health Center, dental clinic, health education classes, support groups, and health screenings and CPR training.
"I am fully confident that the strength and breadth of the Abington Health organization makes it a perfect fit for the North Penn VNA," said Kitty Fitzgerald, executive director of North Penn Visiting Nurse Association, in a statement. "Lansdale Hospital has been a good community partner since Abington Health acquired the hospital almost four years ago."
The due diligence process is expected to take 60 days.