St. Peter’s Healthcare and RWJBarnabas Health Discuss Strategic Partnership
The agreement puts the two health care institutions on a path toward reaching a Definitive Agreement, which they expect to reach within the coming months. The LOI follows a Request for Proposal released by Saint Peter’s in October 2018 that it was considering a strategic partner.
NEW BRUNSWICK, NJ— Saint Peter’s Healthcare System and RWJBarnabas Health signed a non-binding Letter of Intent on Monday to explore a potential partnership.
The agreement puts the two health care institutions on a path toward reaching a Definitive Agreement, which they expect to reach within the coming months. The LOI follows a Request for Proposal released by Saint Peter’s in October 2018 that it was considering a strategic partner.
Saint Peter’s “discernment process” it stated in a press announcement has involved a comprehensive and detailed analysis of the organization, its rich Catholic mission, the competitive market, and broader industry trends.
The structure of the relationship between St. Peter’s and RWJBarnabas Health has not yet been decided. After protracted discussions that led to the LOI, both health care institutions will engage in a due diligence process to define the specifics of the relationship. Approvals will be necessary from state and federal officials, the Catholic Church and others before the transaction is considered complete.
Under the terms of the LOI, the role of Saint Peter’s as a full-service provider of acute health care services for the greater Middlesex County community would be enhanced. RWJBH would make significant investments in Saint Peter’s and expand the network of outpatient services currently provided by Saint Peter’s, resulting in an even higher level of care for the community. Saint Peter’s would remain a Catholic institution and continue to abide by the ethical and religious directives for Catholic Health Care Services.
RWJBarnabas Health has a service area of nine counties covering five million people. The system includes 11 acute care hospitals, three acute care children’s hospitals, and a renowned pediatric rehabilitation hospital, among many other facilities. RWJBH has a partnership with Rutgers University, creating New Jersey’s largest academic health care system.
Saint Peter’s University Hospital, a 478-bed acute-care teaching hospital sponsored by the Roman Catholic Diocese of Metuchen is the flagship of Saint Peters Healthcare System that also includes the Children’s Hospital at Saint Peter’s. Saint Peter’s is one of a few independent Catholic hospitals in the country sponsored by a Roman Catholic diocese.