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Rutgers and RWJBarnabas Health launch academic health system

Rutgers and RWJBarnabas Health finalized their partnership in academic health system.

Rutgers University and RWJ Barnabas have formed a partnership to function as an academic medical center.
Rutgers University and RWJ Barnabas have formed a partnership to function as an academic medical center.Read moreRutgers University

RWJBarnabas Health and Rutgers University, which operates the New Jersey Medical School and the Robert Wood Johnson Medical School, finalized a partnership to form an academic health system in a bid to improve clinical care, education, and research, but are not merging, the two organizations said Tuesday.

As part of the arrangement, which has been in development since last year, RWJBarnabas, which owns 11 acute-care hospitals for adults in northern and central New Jersey and had $5 billion in total revenue last year, has agreed to contribute $100 million immediately and then more than $1 billion over 20 years to expand education and research.

In addition, RWJBarnabas Health will pay for the construction of a new clinical and research building for the Rutgers Cancer Institute of New Jersey and a new ambulatory care center, both in New Brunswick. Details on the costs of those projects were not provided.

The clinical operations of Rutgers Biomedical & Health Sciences had $473.1 million in net patient revenue last year.

Rutgers and RWJBarnabas will combine their doctors in a new medical group that is expected to number more than 2,500, Rutgers said in a bond prospectus this year.