Inspira Health has agreed to acquire Salem Medical Center, a small Salem County nonprofit that has had a tumultuous ownership history in recent years, Inspira announced Monday.
The acquisition could bring more stability to a small hospital that has struggled financially. And it would give Inspira a stronger foothold in Salem County, which sits across the Delaware River from Wilmington.
Terms of the acquisition, which is expected to be completed next year after review by the New Jersey Attorney General, were not disclosed, though Inspira said it is in scheduled to receive $20 million from the state to help with the acquisition and to invest in the facility.
“This is a milestone moment for our organization as it furthers Inspira’s commitment to increase access to convenient, high-quality health care in South Jersey,” Amy Mansue, Inspira’s chief executive, said in a statement. The nonprofit system is based in Mullica Hill.
Salem Medical Center’s current owner is Salem County Hospital Corp., a nonprofit that was formed to acquire the facility from publicly traded Community Health Systems Inc. in 2019 for $1 million. Community Health bought the facility for $35 million in 2002.
Community Health’s 2017 agreement to sell what was then known as Memorial Hospital of Salem County to Prime Healthcare Foundation fell through. The foundation owns Suburban Community Hospital in East Norriton.
Salem County Hospital Corp. lost $961,916 on $53 million in revenue in 2019, according to its tax return for that year. A for-profit company, CHA Partners LLC, managed the hospital and was paid $3.2 million that year. Salem Medical Center has 87 beds, according to the New Jersey Department of Health.
If it completes the acquisition of Salem Medical Center, Inspira will have two hospitals in Salem County. The other is Inspira Medical Center Elmer.
Inspira also owns Inspira Medical Center Mullica Hill in Gloucester County and Inspira Medical Center Vineland in Cumberland County.
In all, Inspira has 596 licensed beds. It has operating income of $18.6 million on $892 million in revenue last year.