System pays millions to cut its losses ; Shedding an unprofitable New Jersey hospital will cost Saint Barnabas $8 million.(Brief Article)(Statistical Data Included)

Modern Healthcare | September 4, 2000| | Copyright

New Jersey's largest healthcare system is divesting the weakest link in its 10-hospital chain, but instead of getting paid for the hospital, it's paying someone else $2 million in cash to take the facility off its hands.

West Orange-based Saint Barnabas Health Care System has signed a letter of intent with St. Joseph's Healthcare System that will transfer ownership of 170-bed Wayne (N.J.) General Hospital to St. Joseph's, the parent company of 621-bed St. Joseph's Hospital and Medical Center in Paterson, N.J.

Besides the upfront $2 million payment to St. ...

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