The Robert Wood Johnson Foundation has been a leading financial supporter of studies which conclude that hospital mergers lead to unjustifiable price increases. (Position 1).
One of it’s signature studies has been reviewed in detail by the Washington, DC regulatory watchdog the Center for Regulatory Effectiveness (CRE). CRE has concluded that the study violates the Data Quality Act and therefore can not be used by any federal agency as a basis of making policy or issuing regulations.
On the other hand the other hand the Foundation’s namesake hospital, the Robert Wood Johnson University Hospital, whose former board member is now the Chairman of the Board of Trustees of the Foundation, has now merged with another hospital. (Position 2).
CRE has sent its study to both the Department of Justice and the FTC for comment. CRE awaits a response from both agencies.
CRE also welcomes the comments of the Robert Woods Johnson Foundation, the many consultants and economists who it has funded to study hospital mergers as well as the numerous organizations it has established as operating arms of the foundation to study hospital mergers.
By: Sergio Bichao, My Central New Jersey.com
Robert Wood Johnson University Hospital, Somerset Medical Center sign merger agreement
NEW BRUNSWICK — Robert Wood Johnson University Hospital and Somerset Medical Center have made it official and signed a merger agreement.
The agreement has been submitted to the state Attorney General’s Office for review and regulatory approval. Hospital officials said Tuesday that they expect the agreement to be finalized sometime next year.
The merger, first announced in June, combines the hospitals into a new 965-bed institution with campuses in Somerville, where Somerset Medical is located, and New Brunswick, where Robert Wood Johnson University Hospital is headquartered.
The two nonprofits are among many hospitals in the state that are pursuing mergers and partnerships to save money and leverage resources in a changing health care landscape.
Kenneth Bateman, Somerset Medical Center president and CEO, said the merger will create “one of the largest acute-care facilities in New Jersey.”
Each hospital has a transition team to plan the merger details.
John R. Lumpkinm Robert Wood Johnson University Hospital board of directors chairman, said officials “anticipate a smooth transition process” because the two organizations already share many of the same physicians and have existing clinical partnerships.
Staff Writer Sergio Bichao: 908-243-6615; sbichao@njpressmedia.com