NJ hospital chain acquires Salem Medical Center
Salem Medical Center joined South Jersey hospital chain Inspira Health on Friday, one year later The two healthcare institutions have announced their plan to join forces, senior executives announced.
Inspira, which already owns hospitals in Elmer, Mullica Hill and Vineland, is now the parent company of Salem Medical Center. Inspira acquired the hospital building, ambulatory surgery center and medical offices for $20 million and opened a line of credit to cover any future debt or revenue shortfalls, according to the announcement.
“Our immediate focus is to stabilize Salem Medical Center and ensure they have the resources they need to care for the community they serve. Moving forward, we will continue to assess the needs of the community and take the necessary steps to ensure that those needs are met,” said Warren E. Moore, Inspira Health’s executive vice president and chief operating officer.
The state Legislature supported the deal by appropriating $25 million from the state budget.
Assemblywomen Beth Sawyer, R-Gloucester, and Bethanne McCarthy Patrick, R-Salem, celebrated the announcement Friday night, with Sawyer calling it “news that the communities served by the hospital, dedicated nurses, and healthcare professionals attentive health deserve to listen ”.
Located in Mannington Township, the hospital has served the area for more than a century, but has faced financial problems in recent years and halted some services during the height of the pandemic, lawmakers said.
“As a lifelong resident of this community and an EMT, I know that this area of Salem County needs the consistent level of care that Inspira Health will provide,” said McCarthy Patrick (R-Salem). “I applaud this partnership because it means residents will no longer have to fear a healthcare desert and can rely on safe and convenient care.”
Inspira will oversee the Salem campus and 350 employees as the deal is finalized over the next year, according to the announcement.
Dave Yhlen, a tenured leader at Inspira Health, will now serve as Salem’s chief operating officer, while Lydia will serve as its managing director.
“A longstanding commitment of Inspira Health has been to increase access to care in South Jersey. Adding Salem Medical Center to our system is just one of many critical next steps in redefining the healthcare infrastructure in Salem County,” said Ronald Rossi, Inspira Health Board of Directors Chair.
“Our organization has been a part of Salem County for more than 70 years, and now through this partnership, we are strengthening our commitment to the South Jersey community and are able to further help members of the Salem community.”
There are 71 intensive care and full service hospitals in the state and all but eight are owned or affiliated with larger chains after more than a dozen years of mergers and consolidations. They are: Englewood Hospital, The Valley Hospital in Ridgewood, Hunterdon Medical Center in Raritan, Hudson Regional Hospital in Secaucus, Shore Medical Center in Somers Point, Holy Name Medical Center in Teaneck, Bergen New Bridge Medical Center in Paramus, and University Hospital in Newark. .
Thursday, Cooper University Health Care at Camden and Cape Regional Health System announced its intention to merge next year, pending government approvals. Capital Health acquired St. Francis Medical Center in Trenton earlier this month and plans to use the facility as a stand-alone emergency department and for outpatient services.
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Susan K. Livio can be contacted at email@example.com. Follow her on Twitter @SusanKLivio.