Merging Independent Nonprofit Community Health Agencies: A Response to Changes in Funding Conditions

In NJ, Maternal Child Health Consortia (MCHC) are independent, non-profit corporations licensed by the NJ Department of Health & Senior Services to perform public health planning, quality improvement, and professional and consumer education. Hospitals with inpatient obstetric services pay dues to MCHC based on the annual number of infants born at their facilities. In response to increasing financial pressure on hospitals and decreasing government funding, three MCHC in northern NJ are in the process of executing a corporate merger. Planning for this consolidation has focused on governance, finances, and program considerations. Balancing fiscal priorities with public health needs has required the use of objective decision making models. Lessons learned during the process will be used to illustrate the recession's impact on public health initiatives addressing women's and children's health.