A Trinity Health entity has found buyers for two of its New Jersey hospitals that were at the center of the failed Cooper University Health Care deal.
Virtua Health has signed a definitive agreement to acquire Lourdes Health System, including Our Lady of Lourdes Medical Center, Camden and Lourdes Medical Center of Burlington County in Willingboro, N.J. The deal also includes Lourdes Medical Associates and Lourdes Cardiology Services.
The agreement between Virtua and Maxis Health System, the Trinity entity that includes the hospitals and related practices, follows a non-binding letter of intent announced in March.
David Kindlick, chairman of Virtua's board of trustees, wrote in a statement that Virtua and Lourdes offer complementary services.
"Bringing our organizations together creates a more fully integrated network offering greater access and care options for our patients," he said. "It just makes good sense."
Virtua spokeswoman Kathy McLaughlin did not provide an anticipated closing date, but said the proposed deal must receive state and federal regulatory approval.
The combined organization will offer tertiary care through a robust clinically integrated network, Virtua wrote in a news release. Virtua said its expanded scale and shared infrastructure will increase access and improve efficiencies.
Lourdes President Dr. Reginald Blaber said in the statement that Lourdes is "thrilled" to be joining Virtua.
"Their passion and visionary approach to care is completely aligned with the Lourdes Health System, and we are looking forward to a bright future ahead," Blaber said.
In December, Cooper University Health Care dropped its plans to buy the Maxis hospitals in Camden and Willingboro. The original letter of intent included another Maxis hospital, St. Francis Medical Center in Trenton. Trinity spokeswoman Eve Pidgeon wrote in an email that Maxis is still seeking a strategic partner for that hospital.
Cooper sued Maxis shortly after the deal fell through to recoup its $15 million deposit related to the deal, arguing it was entitled to the money because of a number of problems uncovered during the due diligence process. Those issues included unresolved litigation that could allegedly expose the health system to a more than $20 million penalty and potential 340B compliance issues. That case went into mediation in January. A Cooper representative could not immediately provide an update on that process.
McLaughlin declined to say whether the due diligence issues uncovered during that proposed deal could affect Virtua's deal with Maxis.
"At this point, what we put out is all that we're going to put out," she said.