Skip to main content

News

Business Roundup: Barnabas Health, RWJ Health Complete Merger

By John Commins  
   April 04, 2016

The latest spate of round of mergers and acquisitions includes announcements from Sanford Health, Community Health Systems, the Westchester Medical Center Health Network, and Tenet.

Barnabas Health and Robert Wood Johnson Health System have finalized the previously announced merger of their two health systems to form what they're calling "the most comprehensive health system in the state of New Jersey."

Financial terms were not disclosed.

The renamed RWJBarnabas Health is now the biggest health system in the state of New Jersey, with 11 acute care hospitals, three pediatric acute care hospitals and a pediatric rehab hospital, a freestanding 100-bed behavioral health center, and outpatient and ambulatory care centers scattered throughout the region, a medical group, and four accountable care organizations.

The health system is expected to reach about 5 million people, more than half the population of the state. Combined, they will have $4.5 billion in revenues, 260,000 inpatient admissions, 2 million outpatient visits, nearly 700,000 emergency department visits, 23,000 births, according to media reports.

RWJBarnabas Health also becomes New Jersey's second largest private employer, with more than 32,000 employees and 9,000 physicians. It will train more than 1,000 residents and interns annually.

Barnabas Health President/CEO Barry H. Ostrowsky becomes RWJBarnabas Health's president/CEO.  Former Robert Wood Johnson Health System and Robert Wood Johnson University Hospital President/CEO Stephen K. Jones becomes Chief Academic Officer in the Office of the President. 

"By joining together, we have created the most comprehensive health system in the state, which will enable us to effect the kind of change in the health of our communities that our two separate systems could not do alone," Ostrowsky said in prepared remarks. "Our partnership also means a greater level of diversity in every respect—diversity in thought, clinical care delivery and workforce—a true reflection of New Jersey and of the people we serve."

Under the agreement, the two health systems have implemented a member substitution, creating a new organization based in West Orange. RWJBarnabas Health is being led by a single board of trustees and a single leadership team composed of executives from both organizations.

The new board includes equal board representation from Barnabas Health and Robert Wood Johnson Health System, as well as the CEOs of both organizations. 

HealthAlliance (NY) Joins WMC Health Network
Kingston, NY-based HealthAlliance of the Hudson Valley has joined the Westchester Medical Center Health Network. The affiliation gives HealthAlliance greater access to WMC's physician network and purchasing power, the two health systems said in a media release.

"We couldn't be happier with the relationship," said David Scarpino, president/CEO, HealthAlliance. "It ensures that our community will receive the highest-quality healthcare, locally, now and well into the future. The agreement strengthens HealthAlliance's existing healthcare offerings while providing new and more advanced services to meet a full range of patient needs."

Under the affiliation, Scarpino says Health Alliance will continue to provide critical access and skilled nursing services in the Margaretville area while building a "medical village" of ambulatory services at its Broadway Campus.

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


Get the latest on healthcare leadership in your inbox.