RWJBarnabas Health and Trinitas Regional Medical Center in Elizabeth are closing in on a merger agreement, officials of the two hospitals said April 26.

“We continue to conduct research and hold discussions,” Barry Ostrowsky, president and chief executive officer, RWJBarnabas Health told NJBIZ. “There could be a formal announcement within the next 90 days.”

“We’ve had constructive discussions with RWJ Barnabas and feel that they could result in an arrangement that will benefit both organizations and most importantly, the community we serve,” said Trinitas President and CEO Gary Horan.

A combination of RWJ Barnabas, one of the state’s largest health systems, and Trinitas, a standalone hospital, would continue a consolidation trend in New Jersey.

In 2018, Virtua Health signed a definitive agreement to acquire Lourdes Health System, including Our Lady of Lourdes Medical Center, Camden and Lourdes Medical Center of Burlington County in Willingboro.

That acquisition is proceeding as planned. Recently, public hearings were held in Camden and Willingboro to solicit public comments regarding the acquisition. The transaction is currently under review by the New Jersey Attorney General’s Office to ensure that it will serve the public interest.

After the review, the acquisition will need Superior Court approval before it can be implemented. Virtua is proceeding toward a likely deal closing during summer 2019.

As hospitals respond to increasing pressures of health care reform, they are attempting to integrate both horizontally and vertically to be able to deliver integrated, cost-effective care, according to a study by Charles River Associates.

While various forms of affiliation are being pursued, many hospital leaders believe that complete mergers and acquisitions are the most effective means meet the aims of value-based population health.

According to studies cited by the American Hospital Association, hospital mergers benefit patients and health plans by reducing costs and revenue at the acquired hospitals; however, there is no convincing statistical evidence of changed quality at acquired hospitals.

In addition, some detractors contend that when an independent hospital is absorbed by a large health system, it risks distancing itself from the community.