Trinitas Regional Medical Center and its affiliates will become part of RWJBarnabas Health under a definitive merger agreement the systems entered into on Nov. 11.
The two institutions signed a letter of intent in October 2019 to explore a potential transaction. Financial terms were not disclosed.
“Our board has been most impressed with RWJBarnabas digging their heels into social determinants of health,” said Trinitas President and CEO Gary Horan on what about RWJBarnabas complements Trinitas. “That’s something we have a commitment to, but we don’t have all the resources to do that.”
RWJBarnabas President and CEO Barry Ostrowsky picked up on that theme, which he has often expressed in media interviews and elsewhere. “From our perspective, we believe it’s our job to make the communities healthier. You can do that through clinical programs, but if you just do clinical programs people aren’t going to get healthier. They live in substandard housing, have food insecurity… it’s our mission, and Trinitas has been a leader in this, to address those social determinants,” he said.
RWJBarnabas CEO Barry Ostrowsky and Trinitas CEO Gary Horan announce the merger of the two health systems on Nov. 11, 2020. – GRACE PHOTOGRAPHY
“We see ourselves not only in the clinical but social program space,” Ostrowsky added, noting that RWJBarnabas is building housing, training people for employment, and addressing food insecurity.
After the merger is finalized, RWJBarnabas and Trinitas will build “a couple of ambulatory sites so we can get care out into the community more effectively,” he said. No closures, contraction, or reduced workforce is planned.
Approvals will be necessary from both state and federal authorities as well as from the Catholic Church before the transaction is considered complete. The process is expected to take up to one year.
Under the terms of the agreement, RWJBH will become the corporate parent of Elizabeth-based Trinitas and will make significant investments in the target. Plans include an expansion of the network of outpatient services currently provided by Trinitas, resulting in a higher level of care for the community. Trinitas will retain its identity as a Catholic institution and will abide by the Ethical and Religious Directives for Catholic Health Care Services.
The Sisters of Charity of Saint Elizabeth will continue to serve as the Catholic sponsor of Trinitas, and the Trinitas Board will continue to oversee Trinitas’ daily operations.
“The parties have been in discussions for some time and share a common perspective and culture regarding the provision of high quality, cost-effective services to their communities consistent with their respective missions and the need to move in the direction of population health management,” the agreement states.
Ostrowsky said that with this agreement, as with when any organization joins RWJBarnabas, all financial responsibility including long term debt and all expenses become the responsibility of RWJBarnabas. The capital investment RWJBarnabas has agreed to make comes from the system coffers.
“It’s kind of a one for all and all for one system,” he said. “It’s always been that because we think that’s the most effective way to pursue the mission.”
The deal is the latest in a series of mergers involving New Jersey hospital systems. In September, RWJBarnabas signed a deal with Saint Peter’s Healthcare system in New Brunswick.
This story was updated at 4:30 p.m. on Nov. 11, 2020 to add quotes from interviews with the two CEOs.
