St. Peter’s Healthcare System and RWJBarnabas Health Merger - Health Professionals & Allied Employees

St. Peter’s Healthcare System and RWJBarnabas Health Merger

CORPORATE STRUCTURE

St.Peter’s University Hospital originally began in New Brunswick in 1872 in a Victorian home, and has grown at its current location to include: a children’s hospital; a center for ambulatory resources and outpatient surgicenter; a family health center; a GYN center; a sports medicine center; a physician practice office; a cancer center; and a child protection center.

St. Peter’s University Hospital has 478 licensed beds and is a teaching hospital sponsored by the Roman Catholic Diocese of Metuchen. There are over 4600 employees, including doctors and dentists.

RWJBarnabas Health is one of the largest health care systems in New Jersey. It is comprised of 13 acute care hospitals, 4 children’s hospitals, and almost 200 subsidiary locations in the state providing urgent care, outpatient pediatric care, surgical care, rehabilitation and sports medicine, pharmacies, nursing facilities, imaging, laboratories, day care centers, and its medical school. RWJBarnabas has approximately 32,000 employees, 9,000 physicians, and 1,000 residents and interns.

Both health systems are non-profit and therefore subject only to the CHAPA process through the New Jersey Attorney General’s office.

CHAPA PROCESS

When two non-profit health systems announce an intention to merge, they must contact the New Jersey Attorney General’s office and begin the Community Health Assets Protection Act (CHAPA) process. This begins with submission of a Letter of Intent, followed with the AG’s office requesting information and documentation including financial statements, fair value appraisals, board meeting minutes, conflict of interest statements from board members and key employees, any consultant reports, and hierarchy charts. Once the AG’s office is satisfied with the information submitted, it will post an announcement for a public hearing, at which members from the community may speak in favor of or against the proposed merger. The AG’s office writes a recommendation, sending it to the Superior Court, which gives the final approval (or denial) based on the AG’s report.

HIGHLIGHTS: LETTER OF INTENT

In a four-page Letter of Intent, it is clearly stated that whether St. Peter’s is completely subsumed by RWJB or RWJB becomes a minority investor, St. Peter’s will remain sponsored by the Roman Catholic Diocese of Metuchen. The letter outlines an exclusivity clause, negotiating the definitive agreement, a confidentiality clause, and due diligence.

The cover letter accompanying this LOI was sent to the AG’s office on October 16, 2020; the Merger Substitution and Merger Agreement were also included. In response, the AG’s office sent the first set of CHAPA questions to St. Peter’s on October 29, 2020, with 57 initial questions.

News

New deals coming
Jan 08 2020

Financial pressures and an increasingly competitive market are driving the consolidation of hospitals in New Jersey. While traditional hospital mergers and acquisitions will continue, an uptick in non-traditional alliances will also occur in 2020.

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Bayonne blues
Dec 02 2019

Bayonne Medical Center is looking for a merger partner amid a consolidation wave, but residents worry about losing access to acute care...

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FTC to Study the Impact of COPAs
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The Federal Trade Commission issued orders to five health insurance companies and two health systems to provide information that will allow the agency to study the effects of certificates of public advantage (COPAs) on prices, quality, access, and innovation...

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NJ AG recommends Virtua-Lourdes deal move forward
Jul 01 2019

The proposed deal calls for Virtua to acquire Lourdes and its hospitals, Lourdes Medical Center of Burlington County in Willingboro and Our Lady of Lourdes in Camden, as well as Lourdes’ nursing school, medical associates and cardiology offices. TRENTON —

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Virtua to Acquire The Lourdes Health System
Jun 07 2018

Taken from the TapInto Camden, June 5, 2018 Camden, NJ—Virtua Health has signed an agreement to acquire Lourdes Health System from Trinity Health, including Our Lady of Lourdes Medical Center in Camden. The boards of Virtua Health and Maxis Health System, an

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Sale of Meadowlands Hospital Receives Final Approval
Dec 18 2017

The state has approved the sale of Meadowlands Hospital Medical Center, the Secaucus hospital where admissions have plummeted under private ownership, to a multimillionaire real-estate developer who owns a Bergen County surgical center. 

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HPAE Raises Concerns About HMH-JFK Merger
Oct 31 2017

Last night a dozen HPAE members and staff attended a public hearing on the affiliation of JFK Medical Center with Hackensack Meridian Health (HMH). If the merger goes through, HMH will own 15 hospitals in the state of New Jersey.

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Merger With Hackensack Health System Completed
Mar 02 2016

Palisades Medical Center and The Harborage are now officially part of the Hackensack Health System. Palisades Medical Center will be called HackensackUMC Palisades. HPAE has issued a press release on the merger, including the following comment from Local 5030 President Michele

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Thats all, folks - no more news!

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