PERTH AMBOY — Raritan Bay Medical Center has begun talks with a California-based for profit healthcare company to take over the nonprofit’s Perth Amboy and Old Bridge hospitals, but a potential merger is a long way off.
Raritan Bay Medical Center (RBMC) announced Wednesday that it had entered into a non-binding letter of intent with California based Prospect Medical Holdings, Inc. RBMC had previously distributed a request for proposal to several organizations expressing interest in partnering with them.
“We chose Prospect after an extensive search to find a respected organization that would work with the hospital’s physicians and staff and grow the hospital’s identity within the communities we serve.” said Michael R. D’Agnes, RBMC President and CEO.
The Affordable Care Act and changes in the Medicare/Medicaid reimbursement structure continue to drive efficiencies in healthcare quality and cost making it imperative for hospitals to change the way they care for patients and where patients receive care, according to a statement by RBMC. “Partnering with such an organization gives RBMC the resources it needs to continue to meet the obligation to the communities it serves,” said Joseph Jankowski, Chairman of RBMC Board of Directors.
“Raritan Bay Medical Center’s mission for driving quality and access to care for all patients is what makes them so important to the community and it is evident in the work the hospital board, administration and medical staff have accomplished. We are excited about joining this organization and building on this highly coordinated, efficient healthcare delivery model, which will be our flagship hospital in New Jersey,” said Samuel Lee, Chairman and CEO of Prospect Medical Holdings, Inc.
Raritan Bay Medical Center Medical Staff President, Kumar Dasmahapatra, MD, sees this as an opportunity to expand the hospital’s care continuum and provide the growing medical staff with the resources it needs to meet the ever-changing and complex medical needs of patients. “Our goal has always been to distinguish ourselves by consistently providing high quality medical care and attracting and retaining the best physicians and surgeons. Growing our services by aligning ourselves with a strong partner will enable us to continue doing that,” said Dr. Dasmahapatra.
RBMC and Prospect will work toward the development of a Definitive Agreement, and the transaction will be subject to federal and state approvals.
John Grywalski, CPA, President and CEO of Executive Resources, a New Jersey Consulting firm, facilitated the transaction representing Raritan Bay Medical Center.
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