RWJBarnabas Health (RWJBH) is planning more for more growth.
Officials from the West Orange, New Jersey-based health system signed a letter of intent to acquire Elizabeth, New Jersey-based Trinitas Regional Medical Center and its affiliates.
Trinitas is a 554-bed Catholic medical center located on two campuses including a 120-bed, long-term care center. Trinitas is the result of a merger in the year 2000 between Elizabeth General Medical Center and St. Elizabeth Hospital.
“The rapidly changing health care landscape presents new challenges and opportunities," said Barry Ostrowsky, president and CEO of RWJBH, in a statement. "Trinitas is a vital resource to the eastern Union County community, and through this agreement we would greatly expand our reach into new communities with our mission of improving the health and well-being of its residents."
The nonbinding agreement laid out a basic structure for the proposed transaction and is the first step in the process of evaluating and designing the new relationship. Approvals will be needed from state and federal officials and the Catholic Church.
RWJBH was created as the result of a 2016 merger between Barnabas Health and Robert Wood Johnson Healthcare and has 11 acute care hospitals, three acute care children’s hospitals and a pediatric rehabilitation hospital. In 2018, RWJBH and Rutgers University announced a $1 billion academic medical partnership, and, earlier this year, they announced plans to break ground on a major cancer treatment and research facility.
Under the terms of the proposed transaction, RWJBH will become the corporate parent of Trinitas.
However, Trinitas would remain a Catholic institution and continue to abide by the Catholic directives. The Sisters of Charity of Saint Elizabeth would continue to serve as the Catholic sponsor of Trinitas, and the Elizabethtown Healthcare Foundation will continue to address the needs of nonprofit organizations in Union County, including RWJBH/Trinitas. The Trinitas Board will continue to oversee day-to-day operations of Trinitas.
RWJBH would make significant investments in Trinitas and expand the network of outpatient services provided.
“I see our eventual move into the RWJBarnabas Health system as an extremely positive and exciting development for our institution – one that will give us the resources and opportunities to greatly enhance the already high level of care we provide to our community," said Gary Horan, president and CEO of Trinitas, in a statement.