$48 Million Agreement Approved with Atlantic Health as Medical Center Expansion Plans Loom
The Town Council approved a $48 million agreement with Atlantic Health Systems (AHS), which owns and operates Morristown Medical Center, at its Tuesday, May 28 meeting.
The agreement is a “successor agreement” to one that expired in 2025, according to Jillian Barrick, the town’s administrator.
“This new agreement, totaling up to $48 million over nine years, offers several important benefits to the town,” Barrick said before the vote. “It provides immediate financial support to help offset the impact of the proposed expansion on residents and taxpayers.”
The agreement also ends pending tax appeals between the town and AHS for the property the hospital is on, the property for the planned expansion and a collection of residential and apartment properties referred to as the “Franklin Apartments.”
Barrick also noted that the agreement creates a structure for Morristown Medical Center’s planned $1 billion expansion, which has been in the works for the past few years. That structure would include opportunities for public input before any zoning decisions are considered.
“A general development plan (GDP), similar to a master planning process, is a comprehensive conceptual plan that outlines the fundamental parameters of a project,” Barrick said. “As part of the approval process, the GDP must include a detailed breakdown of the site plan and its impact supported by extensive analysis.