Business & Finance

Barnabas Health and Robert Wood Johnson Health System Sign Historic Agreement

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LIVINGSTON, NJ – Barnabas Health and Robert Wood Johnson Health System signed a definitive agreement this week that outlines the merger between the two health systems. Once complete, the transaction will create New Jersey’s largest health care system and one of the largest in the nation — to be known as RWJ Barnabas Health. The agreement will now be submitted to the New Jersey Attorney General for review, with the expectation that the merger will be completed in 2016.

At that time, RWJ Barnabas Health will annually represent operating revenues of more than $4.5 billion, 260,000 inpatient admissions, 2,000,000 outpatient visits, nearly 700,000 Emergency Department visits, 23,000 births, nearly 30,000 employees, 9,000 physicians and 1000 residents and interns. The new system will be comprised of 11 acute-care hospitals, three children’s hospitals, a pediatric rehabilitation hospital, a behavioral-health center, ambulatory-care centers, and five fitness and wellness centers.

The combined system is expected to provide greater opportunity to improve the health and promote wellness of communities throughout the state. The new system’s geographic footprint will span Hudson, Essex, Union, Middlesex, Mercer, Somerset, Monmouth and Ocean counties.

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“The new health system will comprise effectively every clinical service from primary to quaternary and greatly strengthen our commitment to medical education and research,” said Barry H. Ostrowsky, president and chief executive officer of Barnabas Health. “The merger also will provide a large enough geography to be appropriate for the migration to population health management.”

“We are excited to move forward with this historic merger agreement which will offer the diverse communities in New Jersey expanded access to the best in academic medicine and community-based care,” said Stephen K. Jones, president and chief executive officer of Robert Wood Johnson University Hospital and Robert Wood Johnson Health System.

Transition teams have been formed to begin planning for combining the two systems. Under the terms of the agreement, Ostrowsky will serve as the Inaugural President and Chief Executive Officer of RWJ Barnabas Health. Jones will serve as Chief Academic Officer in the Office of the President, leading efforts to further strengthen the relationship between the new entity and its academic partner, Rutgers University. The Board of Trustees representation will be evenly divided between the two organizations.

“Because our organizations have a shared vision for how health care should be delivered and our traditional service areas are complementary, we anticipate a smooth transition process,” said Jack Morris, chair of the Robert Wood Johnson University Hospital Board of Directors.

For more information about Robert Wood Johnson Health System and Barnabas Health, go to www.rwjuh.edu or www.barnabashealth.org.

“As health care in America transforms, the new alliance positions our system as one of the foremost providers of health care and wellness services in the entire region,” stated Marc E. Berson, chairman of the Barnabas Health Board of Trustees.

About Barnabas Health

Barnabas Health is the largest not-for-profit integrated health care delivery system in New Jersey and one of the largest in the region, with more than two million patient visits and delivery of more than 20,000 babies annually. The system includes seven acute-care hospitals: Clara Maass Medical Center in Belleville, Community Medical Center in Toms River, Jersey City Medical Center in Jersey City, Monmouth Medical Center in Long Branch, Monmouth Medical Center Southern Campus in Lakewood, Newark Beth Israel Medical Center in Newark, and Saint Barnabas Medical Center in Livingston (four are teaching hospitals); two children’s hospitals, a freestanding 100-bed behavioral health center, a trauma center, ambulatory care centers, geriatric centers, the state’s largest behavioral health network, comprehensive home care and hospice programs, retail pharmacy services, a medical group, multi-site imaging centers and four accountable-care organizations. As the second-largest private employer in New Jersey, Barnabas Health includes more than 21,000 employees, over 5,200 physicians, and 500 residents and interns.

About Robert Wood Johnson Health System

The Robert Wood Johnson Health System is New Jersey’s premier health system of choice. Working in partnership, the system’s faculty and community doctors, nurses and allied health professionals give New Jersey residents access to a breadth of specialty health care services and life-saving destination therapies found only at a handful of institutions nationwide.

The RWJ Health System boasts four acute care hospitals: RWJUH in New Brunswick and Somerville; RWJUH - Hamilton and RWJUH - Rahway and the nation’s largest provider of pediatric rehabilitation: Children’s Specialized Hospital, as well as five fitness and wellness centers and many retail ambulatory facilities. Patients have access to exceptional women’s and children’s services and expert cancer, cardiac, emergency, neurology, stroke, trauma and pediatric rehabilitation care in addition to comprehensive health and wellness programs.

The 1733-bed system routinely captures national awards for its outstanding quality and safety. It also serves as a major economic engine for the state, earning $1.6 billion in annual revenues, while employing more than 12,000 workers and 3,250 medical staff.

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