Barnabas Health And Robert Wood Johnson Health System Finalize Merger Plans

Barnabas Health and Robert Wood Johnson Health System today signed the definitive agreement which 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 million outpatient visits, nearly 700,000 Emergency Department visits, 23,000 births, nearly 30,000 employees, 9,000 physicians, and 1,000 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, with shared cultures and core values, will 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. Through sharing of resources and best practices, the merger will promote the highest quality health care delivery and also enable greater economies of scale.

“The new health system will comprise effectively every clinical service from primary to quaternary and greatly strengthen our commitment to medical education and research,” stated 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, Mr. Ostrowsky will serve as the inaugural President and Chief Executive Officer of RWJ Barnabas Health. Mr. 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.

“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.

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