Trinity Well being’s St. Francis Medical Heart is exploring a potential sale to its neighbor, Capital Well being.
The Trenton, N.J. instructing hospital introduced Monday it has signed a letter of intent to affix two-hospital Capital, whose Trenton hospital is simply two miles away. The methods declined to share extra element on their plans, however stated the non-binding settlement is step one in evaluating a framework for the transaction, which would want state and federal approval.
Based by nuns, St. Francis was Mercer County’s first hospital in 1874 and stays its solely complete cardiac surgical procedure supplier.
St. Francis CEO Daniel Moen stated in an announcement that each his hospital and Capital are deeply dedicated to caring for the group.
“The quickly altering healthcare panorama presents challenges, however it’s by a shared mission that each organizations look to develop companies and positively impression the well being and well-being of native and regional residents,” he stated.
St. Francis is on shaky monetary footing, having misplaced cash in no less than every of the previous 4 years. The hospital posted a $15.8 million loss on $126.8 million in working income in 2019, based on a Trendy Healthcare evaluation of the newest CMS value stories, that are self-reported by the hospitals or methods. Nevertheless, it is owned by one of many nation’s largest not-for-profit well being methods. Livonia, Mich.-based Trinity has greater than 80 hospitals and nearly $19 billion in annual income.
Trinity additionally tried to promote St. Francis to Cooper College Well being Care together with two different hospitals, however Cooper backed out in late 2017.
Capital’s Trenton hospital additionally operated within the pink in 2019, the newest 12 months for which monetary knowledge can be found, having misplaced $3.7 million on $307.9 million in working income, Trendy Healthcare’s knowledge present. The system’s bigger hospital in Hopewell, N.J. fared higher, posting $12.8 million in working revenue on $482.8 million in income.
“This method aligns very effectively with Capital Well being’s mission, and we’re dedicated to our shared imaginative and prescient of offering the very best degree of look after the group,” Capital CEO Al Maghazehe stated in an announcement.