The letter of intent between the two systems is non-binding. If the deal is completed, it would combine Jefferson’s 14 hospitals and 50-plus sites of care, including outpatient and urgent care centers, with Einstein’s three hospitals. It would also create one of the largest residency programs in the region.

According to the Philadelphia Inquirer, Jefferson would reach nearly $6 billion in annual revenue with the acquisition and begin to rival the University of Pennsylvania Health System, which has been on its own shopping spree in recent years buying up systems like Princeton HealthCare.

For Einstein, it solves its problem for finding a partner to save the financially-troubled system. It posted a $23 million operating loss in 2017 and had its bond rating downgraded to junk status by Fitch Ratings.

“This merger would enable Einstein to continue living its mission of providing high-quality care with humanity, humility and honor, and also provide opportunities for growth and expansion currently out of the organization's reach,” said Einstein president and CEO Barry Freedman. “Both Jefferson and Einstein are aligned in our belief that together we can redefine how patient care is delivered, how health professionals are educated, how research discoveries are brought to patients, and how the health of our communities can be improved.”