The City of Summit and Atlantic Health System today announced an agreement settling property tax appeals related to Overlook Medical Center, and enhancing the collaboration between the town and health care organization.
“We are extremely pleased that the city and Atlantic Health System were able to come together on an agreement that benefits all parties involved,” explained Summit Mayor Nora Radest. “This agreement not only clarifies the financial obligations of the hospital to the city, but also underscores Overlook’s longtime commitment as an active member of our community.”
Under the terms of the agreement, unanimously approved by the City Council on Tuesday, July 25, Atlantic Health System will pay the city at total of $5.56 million in annual installments through 2023. This includes payments to settle outstanding 2014-2017 property tax appeals by the city and counterclaims by Atlantic Health System, as well as support for community health initiatives with the city. The agreement is binding for both parties.
These payments will be paid by Atlantic Health System to Summit unless legislation is passed that requires hospitals to pay a higher amount to their host cities, in which case the organization will pay the higher amount.
“We greatly value the partnership that Overlook Medical Center has with the community of Summit, and we recognize the responsibility we have,” said Overlook president Alan Lieber. “This agreement reflects our ongoing commitment to contribute not only as health care providers, but as good neighbors.”
"This agreement is beneficial for our taxpayers and is a testament to the outstanding community partner Atlantic Health System continues to be with our city,” reports Common Council President Mike McTernan. "The health initiatives that Atlantic Health System is supporting provide tremendous value for all community members.”
Lieber, Radest and McTernan noted that the process of creating the agreement has led to an even closer relationship between the city and the health system.
“The success we will achieve as we work together in the coming years will showcase a community at its finest,” Lieber said.
About Atlantic Health System
Atlantic Health System, headquartered in Morristown, New Jersey, is a leading non-profit, clinically integrated health care system comprised of Atlantic Medical Group with more than 900 physicians and multispecialty care providers, medical centers, rehabilitation and urgent care. Atlantic Medical Group had more than 1.2 million patient visits in 2016. Locations include Morristown Medical Center in Morristown, NJ; Overlook Medical Center in Summit, NJ; Newton Medical Center in Newton, NJ; Chilton Medical Center in Pompton Plains, NJ; Hackettstown Medical Center in Hackettstown, NJ; and Goryeb Children’s Hospital in Morristown, NJ, as well as Atlantic Rehabilitation Institute, and Atlantic Home Care and Hospice. It also includes its subsidiary, Atlantic Ambulance Corporation. Atlantic Health System comprises 1,747 licensed beds, nearly 16,000 employees and more than 3,700 physicians. Atlantic Health System has a medical school affiliation with the Sidney Kimmel Medical College at Thomas Jefferson University; is part of Atlantic Accountable Care Organization, one of the largest ACOs in the nation, and is a member of AllSpire Health Partners.