December Date set for Transaction Close and Transfer of Operations
December 9, 2022
Capital Health, St. Francis Medical Center, and Trinity Health have obtained key approvals for Capital Health to take over services from St. Francis. To ensure there is no disruption of services to the community, the organizations are planning for a December 21 completion of the transaction and services transition. At that time, St. Francis will no longer operate as an acute care hospital, however the site will remain the location for an Emergency Department and several outpatient services. Other services will be relocated.
The approvals come after regulatory reviews by the New Jersey Department of Health of Certificate of Need applications submitted by Capital Health, and approval by the New Jersey Superior Court of the transaction as part of the CHAPA process which included review by the NJ Attorney General’s Office.
Parallel to the review process, 30 integration teams comprised of Capital Health, St. Francis Medical Center, and Trinity team members have been meeting in preparation and anticipation of the transition to ensure that, if approved, there would be no disruption of services for patients in the Trenton and Mercer County community. With these approvals, additional transition information regarding services will be shared with neighbors, patients, and other stakeholders.
“St. Francis has done many great things for the Trenton community, but the current health care landscape has made it unsustainable. Without these key approvals, Trenton would have lost desperately needed health care services, including emergency services, behavioral health, and cardiac surgery. This would be devastating to the residents of Trenton and Central New Jersey,” said Al Maghazehe, President and CEO of Capital Health. “This is not a typical corporate transaction, with one organization taking over another to make itself stronger in the marketplace. In fact, Capital Health has taken a significant risk to try and prevent a health care crisis in Trenton. We are very appreciative of the diligence with which the NJ Department of Health reviewed our Certificate of Need applications, and of the Attorney General’s review and Superior Court support for the transaction. Capital Health is committed to the city of
Trenton, and we will continue to invest in the resources necessary to serve the healthcare needs of our neighbors and broader community.”
“St. Francis Medical Center has been a proud member of the Trenton community for almost 150 years,” said Daniel P. Moen, President and Chief Executive Officer, St. Francis Medical Center. “We have been dedicated to a mission of providing a healing, transforming presence to our community for that entire time. Over the last several years, however, the rapidly changing health care landscape has presented serious financial challenges for our hospital. Transitioning services to Capital Health helps preserve our mission and creates a more comprehensive healthcare system for the residents of Trenton and Mercer County. This acquisition by Capital Health is our best alternative. It combines our high-quality, complementary services to form an integrated health care network that improves access to care for
local and regional residents.”
Capital Health has committed to continue operating an Emergency Department in East Trenton without disruption once the transaction is complete. The Emergency Department, Outpatient Internal Medicine Clinic, and C.A.R.E.S program will be at the current St. Francis Medical Center site (which will be renamed Capital Health – East Trenton) for at least the near term, as will the Schools of Nursing and Radiologic Technology. Long term, Capital Health will develop a new Emergency Department and outpatient site(s) at, or near, the current St. Francis site. Capital Health also plans to add an OB/GYN and prenatal care office in the area of St. Francis to meet this important need. Capital Health Regional Medical Center, also in Trenton, will become the new location for many other services currently provided at St. Francis including cardiac surgery. Capital Health is planning extensive capital projects at Capital Health Regional Medical Center. This expansion will help us preserve essential services provided by St. Francis, and will meet the needs of current patients from both organizations, as well as future patients.
“As a longtime member of Capital Health’s Board of Trustees and also as someone who was born and raised in the North Ward of Trenton, I have a deep appreciation for the history of St. Francis Medical Center,” said Samuel J. Plumeri, Jr., Chairman, Capital Healthcare Inc. Board of Trustees. “Many families I know have a connection to St. Francis, and I know their presence as Trenton’s heart hospital has been a source of pride. We understand this transition will be accompanied by some sadness. However, Capital Health is committed to continuing the mission our two hospitals share, which is to provide comprehensive, high-quality healthcare services to residents of the greater Trenton area. Importantly, we have also worked exhaustively to preserve as many jobs as possible and look forward to expanding our Capital Health family.”
“We began the process of addressing changing health care dynamics negatively impacting our organization in 2015. Set against our Board’s criteria, we considered all options,” said Joseph Youngblood, II, J.D., Ph.D., Chairman, Board of Trustees, St. Francis Medical Center. “Capital Health met our Board’s criteria and ensured a broad range of healthcare services remained in Trenton. Throughout our history St. Francis has always managed to adapt to perpetuate our mission. It took many years to arrive at this decision that we feel is right for the community. As a respected, local healthcare provider, Capital Health knows the community and understands its healthcare needs. As we begin this new model and system of care in Trenton, we move forward so that the hospital’s long-lasting mission to care for
the community and the underserved can continue for years to come.”
Capital Health and St. Francis Medical Center, a member of Trinity Health, entered into a definitive agreement this past January to move forward with Capital Health’s acquisition of St. Francis Medical Center. The addition of St. Francis Medical Center to the Capital Health network of health care services will result in an integrated, comprehensive, and sustainable non-profit health care system for communities in the greater Trenton area.
The definitive agreement was reached after a non-binding letter of intent was signed in the spring of 2021 and a subsequent due diligence period. The due diligence process evaluated how to best enhance capabilities and fulfill the organizations’ shared mission to serve the City of Trenton, surrounding communities, and their residents.
File photo by: Brian McCarthy