Merger Finalized For The Largest Hospital Chain In New Jersey

Barnabas Health and Robert Wood Johnson Health System have agreed to a merger that will create the largest health care system in New Jersey… if the NJ Attorney General approves.

The two health care giants announced the signing of the much-heralded deal on Tuesday.

• See related article: Barnabas Health in Talks with Robert Wood Johnson

The new entity – to be dubbed RWJ Barnabas Health – would include 11 acute-care hospitals in Hudson, Essex, Union, Middlesex, Mercer, Somerset, Monmouth and Ocean counties. It would also include three children’s hospitals, a pediatric rehabilitation hospital, a behavioral health center, ambulatory care centers and five fitness and wellness centers.

RWJ Barnabas Health would boast annual operating revenues of more than $4.5 billion, 260,000 inpatient admissions, 2 million outpatient visits, nearly 700,000 emergency department visits, 23,000 births, nearly 30,000 employees, 9,000 physicians and 1,000 residents and interns.

According to a release, the agreement is expected to be completed in 2016, pending approval from the New Jersey Attorney General’s Office.

“The new health system will comprise effectively every clinical service from primary to quaternary and greatly strengthen our commitment to medical education and research,” stated Barry H. Ostrowsky, President and Chief Executive Officer of Barnabas Health. “The merger also will provide a large enough geography to be appropriate for the migration to population health management.”

According to a release, transition teams have been formed to begin planning for combining the two systems. Under the terms of the agreement, the Board of Trustees representation will be evenly divided between the two organizations.

“Because our organizations have a shared vision for how health care should be delivered and our traditional service areas are complementary, we anticipate a smooth transition process,” said Jack Morris, Chair of the Robert Wood Johnson University Hospital Board of Directors.

Pictured above: Saint Barnabas Medical Center in Livingston