Saint Peter's, RWJBarnabas Sign Letter Exploring Partnership

NEW BRUNSWICK, NJ — Two well-known hospitals in Central New Jersey signed a "letter of intent" on Monday, Dec. 16 to explore a potential partnership.

The hospitals are Saint Peter’s Healthcare System and RWJBarnabas Health. Saint Peter's is a Catholic hospital and RWJBarnabas is a much larger healthcare system. They both have their flagship hospitals in New Brunswick and have long been viewed as competitors in the region.

As of Monday, that may all change.

Saint Peter’s and RWJBarnabas signed a non-binding Letter of Intent "to explore a potential partnership." While hospital executives cautioned Patch this is not technically a merger — at least, not yet — it does put the two institutions on a path toward reaching a definitive agreement, expected within the coming months.

"The letter of intent is the first step in the process of evaluating and designing a new relationship that will enhance health care services for residents in central New Jersey. The structure of the relationship has not yet been decided," said both hospitals in a statement Monday.

In October 2018, Saint Peter's put out a request for proposals, announcing they were seeking a strategic partner.

Under the terms of the letter, Saint Peter's would continue to provide acute health care services for the greater Middlesex County community. RWJBH would make significant investments in Saint Peter’s and expand the network of outpatient services currently provided by Saint Peter’s. Saint Peter’s would also remain a Catholic institution.

RWJBarnabas Health is New Jersey’s most comprehensive academic health care system in the area, serving a range of nine counties and covering five million people. That system includes 11 acute care hospitals, three acute care children’s hospitals, and a renowned pediatric rehabilitation hospital, among many other facilities.

Saint Peter’s University Hospital, by contrast, is a 478-bed acute-care teaching hospital sponsored by the Roman Catholic Diocese of Metuchen. They also have a Children’s Hospital. Saint Peter’s is one of a few independent Catholic hospitals in the country sponsored by a Roman Catholic diocese.

Both Saint Peter's and Robert Wood provide a training ground for Rutgers medical and nursing students.

"Robert Wood Johnson University Hospital academic medical center has enjoyed a longstanding collegial relationship with Saint Peter’s, and we are incredibly excited about the many possibilities for enhanced collaboration signaled by this Letter of Intent," said RWJBarnabas Health CEO Barry Ostrowsky in a statement.

"The rapid consolidation of hospitals in New Jersey and need for greater scale, as well as ongoing changes in healthcare delivery made it vital for us to identify a dynamic and strong strategic partner that would allow Saint Peter’s to retain its Catholic mission and identity, remain competitive, and yield the best possible outcome for our patients, employees, medical staff and the communities we serve," said Saint Peter's CEO Leslie Hirsch. "Working in partnership with RWJBarnabas Health would give us an opportunity to enhance the unique strengths of both organizations.”

Both parties will now 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.

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