Meridian Health completes acquisition of Raritan Bay
Meridian Health completed its acquisition of Raritan Bay Medical Center, one of two deals set in motion last year that will make the system one of the largest in New Jersey.
The Neptune, N.J.-based system announced it acquired Raritan Bay’s two New Jersey hospital campuses after approval from the state. Meridian also has a pending deal with Hackensack University Medical Center. The combined operations of Meridian and Hackensack and a pending deal between Barnabas Health and the Robert Wood Johnson Health System would create New Jersey’s two largest systems.
The Meridian deal comes with challenges. Raritan Bay operates in Perth Amboy and Old Bridge. A review of the facilities’ 2013 finances by Fitch Ratings shows Raritan Bay operated at a loss with $39 million in debt. But John Lloyd, Meridian’s president, said Raritan Bay leaders have improved its finances in the past few years. Meridian will make capital investments to improve its operations, including renovating or replacing the emergency room at one campus and upgrading information technology.