The New Jersey hospital chain acquires Salem Medical Center

Salem Medical Center joined hospital chain Inspira Health in South Jersey on Friday, a year after the two health facilities announced their plan to join forces, executives said.

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 debt or future 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. Going forward, we will continue to assess the needs of the community and take necessary steps to ensure we are meeting those needs,” said Warren E. Moore, Executive Vice President and Chief Operating Officer of Inspira Health.

The state legislature supported the deal by providing $25 million from the state budget.

MPs Beth Sawyer, R-Gloucester, and Bethanne McCarthy Patrick, R-Salem, celebrated the announcement Friday night, with Sawyer calling it “the message for the hospital-serving communities, dedicated nurses and caring health-care professionals to hear.” to earn”.

Located in Mannington Township, the hospital has served the area for more than a century but has encountered financial problems in recent years and suspended some services during the height of the pandemic, lawmakers said.

“As a lifelong resident of this community and an EMT, I know this area of ​​Salem County needs the consistent level of care that Inspira Health will provide,” said McCarthy Patrick (R-Salem). “I welcome this partnership because it means that residents no longer have to fear a health desert and can rely on convenient and safe care.”

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According to the announcement, Inspira will oversee Salem’s campus and 350 employees when the deal closes over the next year.

Dave Yhlen, a longtime leader of Inspira Health, will now serve as Salem’s chief operating officer, while Lydia will be the chief administrative officer.

“A longstanding commitment of Inspira Health is to improve access to health care in South Jersey. Adding Salem Medical Center to our system is just one of many critical next steps in redefining Salem County’s healthcare infrastructure,” said Ronald Rossi, Chair of the Inspira Health Board of Trustees.

“Our organization has been a part of Salem County for more than 70 years, and now through this partnership, we increase our commitment to the South Jersey community and can continue to serve the people of the Salem community.”

There are 71 full-service acute care 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 .

On Thursday, Cooper University Health Care in Camden and the Cape Regional Health System announced their intention to merge over the next year, subject to government approval. Capital Health acquired St. Francis Medical Center in Trenton earlier this month and plans to use the facility as a standalone emergency department and outpatient services.

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Susan K. Livio can be reached at [email protected]. Follow her on Twitter @SusanKLivio.

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