The announcement comes less than a year after the two New Jersey health systems signed a Letter of Intent to explore a partnership.
Saint Peter's Healthcare System and RWJBarnabas Health announced Thursday that they have signed a definitive agreement to merge the two New Jersey healthcare systems.
Financial terms of the deal were not disclosed.
The announcement comes less than a year after New Brunswick-based Saint Peter's and West Orange-based RWJBH signed a letter of intent to explore a strategic partnership.
Under the merger, Saint Peter's – and flagship hospital, Saint Peter's University Hospital, a 478-bed acute-care teaching hospital and acute care children's hospital – would remain as a full-service provider of acute healthcare services, and would retain its identity as Catholic.
In addition, RWJBH will make capital improvements at Saint Peter's facilities.
Sandra Jarva Weiss, a disinterested observer, and chair of the Norris McLaughlin Health Care & Life Sciences Law Practice, told HealthLeaders the consolidations "are indicative of the trend for smaller/local hospitals to join larger health networks for the benefits these larger networks can bring."
"In particular, the health networks may be positioned to make the capital commitments to specific service lines or facility or technology enhancements for the local hospital," she said.
Leslie D. Hirsch, president and CEO of Saint Peter's, said the merger agreement "assures Saint Peter's continued mission and identity as a Catholic hospital."
"We are truly excited about the potential of this opportunity to integrate with RWJBarnabas Health to create a premier academic medical center of national distinction in which Saint Peter's will share responsibility for leadership and governance," Hirsch said.
The agreement must clear state and federal regulatory hurdles, and be approved by the Catholic Church.
Barry H. Ostrowsky, president and CEO of RWJBarnabas Health, said that when the merger is finalized, "we will have the necessary foundation for the creation of our state's first and only premier academic medical center."
“We have signed a Definitive Agreement to integrate with RWJBarnabas Health that assures Saint Peter’s continued mission and identity as a Catholic hospital.”
Leslie D. Hirsch, President / CEO of Saint Peter's Health System
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Under the merger, Saint Peter's would remain as a full-service provider of acute healthcare services, and would retain its identity as Catholic.
In addition, RWJBH will make capital improvements at Saint Peter's facilities.
The agreement must clear state and federal regulatory hurdles, and be approved by the Catholic Church.