The two southern chains of Jersey Hospital announced Tuesday that they had agreed to an agreement that would bring them a flourishing competition in the South Jersey-Philadelphia market.
Virtua Health, which has three hospitals under proprietary in Burlington County, has decided to buy two Lourdes Health System hospitals based in Burlington and Camden, as per the Virtua statement on behalf of both systems.
Facilities of Lourdes is owned by Maxisile, which is a division of Trinity Health Department, the largest hospital chains in the country, operating 93 hospitals in total 22 countries.
The state health service must give permission before completing the merger, said Donna Leusner, a department spokeswoman.
“With Lourdes, we are excited to be Virtua,” said President of the Lourdes Health System, Reginald Blaber. Their visionary and passionate approach to treatment is fully compatible with the Lourdes Health System, and we look forward to a brilliant future.”
The business continues in New Jersey and across the country for mergers and acquisitions for decades, in part owing to emphasis on Affordable Care Act in hospitals and doctors that restricting a long hospital stay. Directorates of the hospitals also believe that larger the organization, greater the negotiating command the institutions will have on insurers.
The 2012 report analysis of nationwide consolidation states that there was an increase by the Robert Wood Johnson Foundation and insurance prices after the merger of hospitals and got more negotiating powers.
In January, Penn Medical, a trade name of the University of Pennsylvania Health System, purchased Princeton University Medical Center in Plainsboro.
Jefferson health based in Philadelphia acquired Kennedy Health’s hospitals at Cherry Hill, Stratford, Washington Township and renamed them.
However, in Last December, Cooper University Health terminated the plans to acquire Trenton-based St Francis Medical Center and Lourdes hospitals.