Inspira Health acquires assets of Salem Medical Center

HARRISON TWP. – Inspira Health has announced the addition of Salem Medical Center, a financially ailing institution that’s expected to receive a cash infusion.

Inspira said it acquired Salem Medical’s hospital building, ambulatory surgery center and physician offices.

Inspira also said it expects to receive $25 million in state aid “to provide Salem Medical Center the latest in medical and communication innovation.”

More:'We need it': Salem hospital staff, residents support Inspira takeover at public hearing

It said the Legislature’s Joint Budget Oversight Committee has appropriated the funds “in support of this effort.”

Salem Medical had a deficit of about $73,000 in 2019, the last year for which its online tax returns are available.

“Through this addition, Inspira will be providing an enhanced level of service, transporting and transferring patients to the most appropriate level of care,” said Warren Moore, Inspira’s executive vice president and chief operating officer.

Friday's announcement came two days after Cooper University Health Care of Camden announced plans to acquire Cape Regional Health System, a smaller institution in Cape May County.

And Capital Health on Dec. 21 is to take over services from St. Francis Medical Center, closing that Trenton hospital in the process.

A changing healthcare system is driving the overall trend in healthcare mergers, said Cathy Bennett, president of the New Jersey Hospital Association.

"Hospitals and health systems are seeking new ways to innovate, invest and deliver care that is affordable and accessible," she said. "Realignment and new relationships are a direct response to communities’ needs, the pressure to reduce costs and the ultimate goal of providing quality care.".

Inspira executives will oversee the Salem medical complex during a transition period of about a year..

“Our immediate focus is on stabilizing Salem Medical Center and ensuring they have the resources they need to care for the community they serve,” Inspira said in a statement.

“Moving forward, we will continue to evaluate the needs of the community and take the needed steps to ensure we are meeting those needs,” it said.

Prior to Friday’s transaction, Inspira operated three medical centers in Mullica Hill, Vineland and Elmer.

Its new acquisition will be known as Salem Medical Center, an affiliate of Inspira Health.

Inspira, which dates to 1899, employs more than 7,000 people in Gloucester, Cumberland, Salem, Camden and Atlantic counties. It also operates two cancer centers, eight multi-specialty health centers, and more than 200 medical offices.

The Salem institution has about 350 employees and a 225-member medical staff. The hospital has served the community for more than 100 years.

Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal.

This article originally appeared on Cherry Hill Courier-Post: Inspira Health acquires hospital, other assets of Salem Medical Center