Barn­abas, Robert Wood John­son form­ing largest N.J. sys­tem

Modern Healthcare - - REGIONAL NEWS - —Me­lanie Evans

Barn­abas Health and Robert Wood John­son Health Sys­tem plan to com­bine their 11 hos­pi­tals to form New Jersey’s largest health sys­tem by rev­enue. Along with another pend­ing deal, the move would con­sol­i­date the ma­jor­ity of hos­pi­tal care in cen­tral New Jersey into two health sys­tems.

Barn­abas, a seven-hos­pi­tal sys­tem based in West Or­ange, and Robert Wood John­son, a New Brunswick-based sys­tem with four hos­pi­tals, have signed an agree­ment that would cre­ate a sys­tem with com­bined an­nual op­er­at­ing rev­enue of $4.5 bil­lion and 30,000 em­ploy­ees, the or­ga­ni­za­tions said in a joint news re­lease. Barn­abas ac­quired Jersey City Med­i­cal Cen­ter in June 2014.

The New Jersey hos­pi­tal mar­ket is un­der­go­ing a rush of con­sol­i­da­tion as hos­pi­tals na­tion­wide en­ter into merger and ac­qui­si­tion deals. The pro­posed RWJ-Barn­abas sys­tem would have nearly one-third of the cen­tral re­gion’s mar­ket share, ac­cord­ing to an anal­y­sis by in­sur­ance ex­pert Allan Baum­garten.

The merger of Hack­en­sack Univer­sity Health Net­work and Wall Town­ship-based Merid­ian Health, which reached a de­fin­i­tive agree­ment in May, would cre­ate a nine-hos­pi­tal sys­tem with $3.1 bil­lion in op­er­at­ing rev­enue, cov­er­ing 26.3% of the cen­tral New Jersey mar­ket.

Robert Wood John­son Univer­sity

Hos­pi­tal is one four in the RWJ sys­tem.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.