NJ Physician Magazine January 2016 by NJPhysician Magazine

JANUARY JULY 2016 2012 Visit us now online at www.NJPhysician.org

Christie Pocket-Vetoes Nonprofit Hospital Tax Bill Horizon Files False Advertising Claim Against Holy Name, Valley over OMNIA Criticism Neurosurgeons Seek Exception to Conflict of Interest Limit on Hiring

Experience the Sovereign Difference

KENNETH BLANK, MD

DOV GORSHEIN, MD

ALAN SHAIMAN, MD

GOPAL DESAI, MD

NADRA MOULAYES, DO

Radiation Oncologist

Breast Surgeon

OUR TOP DOCTORS CLOSE TO HOME... STEPHAN DORKHOM, DO

STEVE ELIAS, MD, FACS

HOMAM BADRI, DPM

RICHARD MAGGIO, MD, FACS

BRENDAN SULLIVAN, MD, FACC

Medical Oncologist

Vascular Surgeon, Vein Specialist

Podiatrist

Urologist

Cardiologist

TO SCHEDULE YOUR APPOINTMENT TODAY, VISIT WWW.SOVEREIGNHEALTHSYSTEM.COM

A fully integrated multi-specialty community healthcare system providing clinical excellence and convenient care to

NORTH JERSEY & NEW YORK RESIDENTS Built from the ground up right here in the Garden State, Sovereign Health System has called New Jersey home for more than 20 years. After two decades of steady growth, Sovereign Health System continues to expand its physician ranks, cutting-edge services, and conveniently located facilities to better serve the people of New Jersey and New York. Sovereign knows it’s important to have that one-on-one connection with your nurse and doctor. That’s why at Sovereign you are treated like family -- and why our latest patient-satisfaction rating is 95%. Sovereign provides you with multi-specialty care, ongoing support, and comprehensive services in one fully integrated community healthcare system. In short, we offer peace of mind . . . close to home.

Bayonne

Hawthorne

Ridgewood

Carlstadt

Hewitt

Staten Island

Dunellen

Jersey City

Wayne

East Brunswick

Mahwah

Woodcliff Lake

Englewood

Oradell

Woodland Park

Paramus

Fair Lawn Glen Rock

Hackensack Jersey City

New Brunswick– Saint Peter’s University Hospital

Carlstadt

Oradell

Englewood Cliffs

Ridgewood

Paterson

Fair Lawn Freehold* Jersey City Fair Lawn

Wayne– St. Joseph’s Cancer Center

Glen Rock

Hewitt

Mahwah

SJCH Pediatric (Fair Lawn) Wayne

University Center for Ambulatory Surgery (Somerset)

CORPORATE OFFICE:

Manhattan, NY**

SOVEREIGN MEDICAL SERVICES, INC.

West Side Manhattan, NY

85 HARRISTOWN RD., GLEN ROCK NJ, 07452 201-834-1100

* Located in CentraState Medical Center ** Administrative services agreement

A fully integrated multi-specialty community healthcare system...CLOSE TO HOME

Published by Montdor Medical Media, LLC

Co-Publisher and Managing Editors Iris and Michael Goldberg

Montdor Medical Media, LLC

Contributing Writers Iris Goldberg Michael Goldberg Anjalee Khemlani Eric Strauss Lilo H. Stainton Andrew Kitchenman

Layout and Design - Nick Justus

New Jersey Physician is published monthly by Montdor Medical Media, LLC., PO Box 257 Livingston NJ 07039 Tel: 973.994.0068 F ax: 973.994.2063 For Information on Advertising in New Jersey Physician, please contact Iris Goldberg at 973.994.0068 or at igoldberg@NJPhysician.org Send Press Releases and all other information related to this publication to

Promote a new ground breaking procedure

Document injuries for legal issues

igoldberg@NJPhysician.org

and more

Experienced surgical and medical photographer available for hospitals, medical practices, lawyers, insurance companies, and others who need high quality photography.

Although every precaution is taken to ensure accuracy of published materials, New Jersey Physician cannot be held responsible for opinions expressed or facts supplied by its authors. All rights reserved, Reproduction in whole or in part without written permission is prohibited.

Portfolio of work available for viewing

973-994-0068

mgoldberg@njphysician.org Subscription rates: $48.00 per year $6.95 per issue Advertising rates on request New Jersey Physician magazine is an independent publication for the medical community of our state and is not a publication of NJ Physicians Association

Available for photography during surgical procedures, with clearance in most NJ hospitals. Familiarity with most procedures â&#x20AC;˘ 24/7 emergency availability if necessary.

CONTENTS

Legislature Sends Nonprofit Hospital Tax Legislation to Christie

Christie Pocket Vetoes NonProfit Hospital Tax Bill

Horizon Files False Advertising Claim Against Holy Name, Valley Over OMNIA

Pros, Cons and Regulatory Policies For Tiered Health Insurance Networks

Brain Surgeons Seek Exception to Conflict of Interest Limit on Hiring

HackensackUMC Names Chief Medical Office its New President

Barnabas Health Makes Executive Changes, IncludingPromoting Sperling, Velez

Kennedy Signs Letter of Intent to Combine with Jefferson Health

January 2016

Taxes

Legislature sends nonprofit hospital tax legislation to Christie By Anjalee Khemlani A bill that would require not-for-profit hospitals to pay municipal contributions in lieu of taxes received full legislative support Monday and is now headed to Gov. Chris Christie's desk. The bill was introduced soon after a landmark case last October in which Morristown settled with Atlantic Health System on the taxes for the 24 percent of its operations that were deemed for-profit. Morristown will receive $10 million up front and an additional $15 million over the next 10 years. “This is a reasonable and responsible way to have hospitals pay their fair share to their local communities while still recognizing their tax-exempt status," said Senate President Steve Sweeney (D-West Deptford). "The health care industry has evolved and changed over the years, but they continue to play an important role as employers and health care providers.” The nonprofit hospital contribution requirements would be first step of its kind taken since the original tax exemption law was enacted in 1913. The bill outlines a payment formula based on licensed beds — a $2.50 per day per bed fee at each hospital — as well as $250 per satellite emergency center. The payments to municipalities would be dedicated to public safety funds, and 5 percent would be remitted to the county where the hospital is located. The bill has also been amended to include a 2 percent annual increase for inflation. The two ways to alleviate the financial burden from this law include any contributions the hospital makes to the municipality, which would count toward the required fee, and operation on a negative margin, which would exclude the facility from the fee for a single year. “This plan that was developed with the hospitals’ input is a fair way to compensate host municipalities for the services hospitals use,” said state Sen. Robert Singer (R-Lakewood). “These hospitals provide critical services to our communities and are a significant economic engine in the areas they serve. We rely on their continued future success under this community payment plan.” The New Jersey Hospital Association has previously expressed support of the bill, but not everyone is happy with it. Newark Councilwoman Gayle Cheneyfield Jenkins criticized the swift passage of the bill and said the amount defined is not a sufficient amount to alleviate the tax burden on residents. "I am thoroughly disappointed that the Legislature passed this bill today," Jenkins said. "This hastily drafted bill pushed through in the lame-duck Legislature was a clear giveaway to the hospital lobby and will shortchange Newark and other cities that are home to nonprofit hospitals. I would encourage Gov. Christie to veto this legislation." But legislators feel it is a fair compromise to the nonprofit exemption. "This bill would eliminate any uncertainty over the property tax exempt status of nonprofit hospitals that lease or share space with for-profit medical providers, but still qualify as nonprofit institutions, while ensuring that a readily calculable fair share contribution is made to the host communities that expend significant sums providing essential services that benefit these hospitals," said Assemblyman Eliana Pintor Marin (D-Newark). 'It's a fair and reasonable approach." "We need to protect our nonprofit hospitals, but also provide relief to taxpayers when for-profit enterprises are involved," said Assemblyman Raj Mukherji (D-Jersey City). "This accomplishes that goal to the benefit of everyone."

4 New Jersey Physician

Christie pocket-vetoes nonprofit hospital tax bill By Anjalee Khemlani A bill that would serve as a dam to the potential overflow of lawsuits to hold nonprofit hospitals accountable for their for-profit operations was pocket-vetoed by Gov. Chris Christie on Tuesday. The move was more of a disappointment than a surprise, legislators said. “With the governor not being here all the time, the normal back-and-forth that occurs for a bill like this didn’t have a chance to develop,” said Assemblyman John Burzichelli (D-West Deptford). Sen. Robert Singer said that, since there is no more time left in the legislative session, the pocket veto was the only option. “If this was not the end of session, the bill could have been conditionally vetoed. The problem is that’s not an option right now, so we want to go back and get it right,” Singer (R-Lakewood) said. Problems with the bill include determining if it was a true payment in lieu of taxes, or PILOT, measure, and having to make sure it meets “constitutional muster,” Singer said.

The bill was created after a tax court settlement between the town of Morristown and Atlantic Health, in which the nonprofit hospital would pay for 24 percent of its operations deemed for-profit. Morristown, which originally sued to strip the hospital of its nonprofit, tax-exempt status, would see a total of about $25 million over 10 years. Legislators jumped into action to avoid similar lawsuits around the state, but with the veto it seems tax lawyers may have an opening. “The recipe is out there for absolute chaos,” Burzichelli said, adding that the money municipalities could be receiving from hospitals will now be going to tax lawyers. Sen. Joe Vitale (D-Woodbridge) said he was a little surprised but also very concerned by the governor’s veto, as well as the lack of explanation as to why. Since the Morristown deal, tax lawyers now have a case law, or a template, to follow — threatening the financial security of some hospitals. Vitale and Burzichelli pointed out that the veto was a political move by Christie to avoid signing something that related to any kind of increase in fees or taxes. “Since the tax court (settlement) in Morristown, the legislation did what it should do, which is act responsibly before there is mass litigation statewide by communities where hospitals are located,” Vitale said. “Everyone who is paying agrees they should be (in the bill).” January 2016

The bill struck a balance, Vitale said: “Higher costs could translate to higher medical costs.” Especially for nonprofits running on razor-thin margins, he said. Singer said that nonprofits do contribute to their municipalities and “anyone who dares jeopardize them, shame on you.” A Newark councilwoman, Gayle Chaneyfield Jenkins, was vocal about her disagreement with the bill, which she said offered municipalities significantly less in funding compared to what taxing for-profit operations could. "The governor's pocket veto of this legislation that was hastily drafted and pushed through the lame duck Legislature gives us a real opportunity to craft a solution that does not shortchange Newark the way this bill did," Chaneyfield Jenkins said. "I am not entirely convinced a one-size-fits-all solution is in the best interest of Newark or other municipalities that are home to nonprofit hospitals. "In the coming months, we need to convene an independent task force with tax experts and health care providers, including acute care hospitals and specialized nursing homes, so we can determine the best approach to ensure the city is receiving its fair share." Singer said any municipality seeking a legal settlement was only trying to “solve their own ineptness and budgetary problems” by relying on hospital contributions. Vitale said that, especially for the hospitals running on lifelines, the taxable amount could bankrupt some facilities. The New Jersey Hospital Association, which had worked on and supported the bill, was also disappointed. “We are disappointed with the pocket veto of S-3299/A-4903. NJHA, along with its hospital members and both houses of the Legislature, firmly believed the bill provided a consistent statewide approach for hospitals to support their host municipalities with added community contributions,” said NJHA CEO Betsy Ryan. “Now that the bill has been vetoed, we will work to present a constructive and refined approach that will provide certainty to hospitals and municipalities while addressing any concerns the governor may have." Jill Ojserkis, an attorney with Cooper Levenson, said the pocket veto encourages uncertainty where the bill could have secured the legal future of hospitals. “Because of the historical tax exemption for the real property upon which many nonprofit hospitals are situated, some municipalities have not heretofore expended the resources to perform accurate and current appraisals,” Ojserkis said. “Municipalities will bear additional costs, which many can ill afford, which will become part of the municipal budget paid for by its commercial and residential taxpayers, and perhaps wait a number of years before obtaining any real property payment from its hospitals."

6 New Jersey Physician

Hospital Rounds

Horizon files false advertising claim against Holy Name, Valley over OMNIA criticism By Eric Strauss Horizon Blue Cross Blue Shield of New Jersey has fired back against two of the most vocal critics of its new OMNIA Health Plans, seeking an injunction against what it claims is false and disparaging advertising by Holy Name Medical Center and The Valley Hospital. In a complaint filed this week, Horizon, which crafted the tiered health insurance plans last year, says Holy Name, based in Teaneck, and Valley, based in Ridgewood, have produced advertising that goes beyond criticism into defamation of the state’s largest insurer. “Holy Name Medical Center and The Valley Hospital have run a false and misleading ad campaign, claiming among other things that our company ‘couldn’t care less’ about babies,” Horizon told NJBIZ in a statement. “It’s deceptive and defamatory and, since Holy Name and The Valley have refused Horizon’s requests to voluntarily end their attack on our company’s integrity, Horizon has little choice but to bring the hospitals to court to stop their reckless statements.” The OMNIA plans have been at the center of a legal and political firestorm since their introduction in September. Both Holy Name and Valley were placed in Tier 2 of the health plans, rather than the top tier of hospitals and other health providers. Bruce Rosen is the attorney for both Holy Name and Valley. “This frivolous lawsuit is a blatant attempt by Horizon to distract attention away from the potentially disastrous impact the OMNIA plan will have on Tier 2 hospitals, their patients and New Jersey’s health care system as a whole,” he said in a statement. “Horizon’s relentless marketing campaign to promote OMNIA has caused significant damage to the reputation of Tier 2 hospitals. Through their misleading marketing and branding efforts, Horizon has led consumers to believe that Tier 1 hospitals are superior, while Tier 2 hospitals are somehow inferior. This is simply untrue. “These hospitals have the first amendment right to set the record straight by informing patients and the general public about the damage the OMNIA plan will inflict on hospitals and consumers.” In its court filing, Horizon asks for court orders requiring: • The cessation and removal of Holy Name and Valley’s advertisements against OMNIA; • Prohibition of false advertising, including potential corrective advertising; • And correction of “any erroneous impression” people may have derived from the advertising. Horizon also is seeking judgments that the hospitals have violated various laws, as well as damages and costs, according to the filing. While Horizon has been the defendant in at least three lawsuits over OMNIA, this is the first time the insurer has filed as a plaintiff.

January 2016

REMEMBER WHY YOU BECAME A DOCTOR?

SOVEREIGN HEALTH DOES. To take care of patients, not paperwork To deal with health conditions, not health plans To be a physician, not an administrator

Join our physician-owned, physician-led medical group, and practice medicine the way it’s meant to be practiced – with the patient always coming first and the physician truly sovereign.

JOHN HAJJAR, MD, FACS, MBA Founder, Chairman, and CEO

My reason for becoming a physician is simple: I wanted to help people. Sovereign truly is a physician-led, vertically integrated healthcare system that does just that. Our mission is to deliver high-quality, cost-effective care through our exceptionally skilled physicians and staff at our conveniently located state-of-the-art facilities.

GLENN A. GMYREK, MD Chief Medical Officer

My goal as a physician, first and foremost, is to help people feel better. In today’s healthcare environment we all know this can be very challenging. Fortunately, at Sovereign Health Medical Group, I have been able to practice medicine without any of the distractions that can make a physician’s job tougher than it already is.

PHYSICIAN-LED, MANAGEMENT DRIVEN To learn more about “The Sovereign Difference,” contact Paul Angresano, Vice President, at 201-855-8376 or pangresano@sovms.com, or visit www.sovereignhealthsystem.com CORPORATE OFFICE: SOVEREIGN MEDICAL SERVICES, INC., 85 HARRISTOWN RD., GLEN ROCK NJ, 07452, 201-834-1100

WWW.SOVEREIGNHEALTHSYSTEM.COM

Pros, Cons, and Regulatory Policies for Tiered Health Insurance Networks Lilo H. Stainton Symposium examines issues behind controversial Horizon Blue Cross Blue Shield coverage plan Health insurance plans with additional network restrictions are becoming an increasingly popular option for businesses looking to curb rising employee costs -- and for patients who want to reduce what they spend out of pocket. These so-called tiered or narrow-network plans have also prompted confusion among some consumers and pitted medical providers against one another in a quest for market share. In the Garden State, the controversy has centered on Horizon Blue Cross Blue Shield of New Jersey’s OMNIA, launched earlier this month. In a nutshell, narrow networks -- which include tiered plans -- benefit consumers by charging lower copays and contributions, in exchange for less patient flexibility when it comes to choosing doctors or hospitals. Healthcare providers that agree to participate in these restricted networks, or in the least expensive tier, accept lower rates of reimbursement for their services from the insurance company, but are guaranteed a certain volume of patients. Government regulators are now struggling to keep pace with the changes and ensure that these plans properly protect patients and remain inexpensive -- without risking the financial health of medical providers who might lose patients, and their insurance reimbursements, to other doctors and hospitals. And according to those involved, some states have found themselves further bogged down by outdated regulations, dwindling staff and a lack of other resources. “Consumers have shown a willingness to trade choice for price,” said Joel Ario, a former insurance commissioner in Oregon and Pennsylvania who also ran the Office of Health Insurance Exchanges in the federal Department of Health and Human Services.

Ario, now a consultant with Manatt Health Solutions, gave the keynote address at a symposium on narrow networks Thursday, discussing the role regulators play in shaping insurance products, protecting patients and aiding consumers as they wrestle with the complex process of selecting health insurance. “People know a lot more about this than they did five years ago, but the average person is still very confused,” he said. This widespread confusion prompted Linda Schwimmer, the President and CEO of the New Jersey Health Care Quality Institute, to plan Thursday’s “Fear of Tiers” symposium at Princeton University. The discussion involved state and national regulators, academics and hospital and insurance industry representatives -- but almost no mention of OMNIA itself, or what panel participant Sen. Joseph Vitale(D-Middlesex) called “the O-word.” “OMNIA is what sparked all the attention and is why the conference was so popular, but the issue is much bigger than OMNIA,” Schwimmer, said by email after the event, which drew several hundred. “This is about the survival of the (Affordable Care Act) and a functioning private healthcare system. Benefits need to be affordable. People need to understand what they are buying The goal was to discuss the “trade-offs between broad choice and cost savings,” she said, and explore how government, industry, and providers can work together to protect patient care, assist consumers with purchasing decisions, and support the hospitals -- and surrounding communities -- that lose patients to other facilities. The controversy around OMNIA itself and the battle between the “winners” and “losers” distracted people from the larger picture, she added. A Horizon spokesman said on Friday the plan was enjoying “positive consumer response,” but said it was premature to offer enrollment numbers; the plan launched to the public in January and, at one point, Horizon predicted it might attract 250,000 patients, including 40,000 who hadn’t been able to afford coverage before. To reduce costs, OMNIA struck a deal with certain healthcare providers to reimburse them at a lower rate in exchange for listing them in a preferred tier, with a larger pool of patients. Providers receive additional financial incentives for meeting other requirements designed to keep patients healthy, which in turn keeps costs down for Horizon. OMNIA members benefit from a lower-cost plan, but trade the freedom to see any doctor they chose. January 2016

Your patients count on you to keep them healthy.

Count on us for your financial health. Recent transactions: n $24,000,000 Financing for Working Capital, Term & Capital Expenditure Line Leading National Radiology Group – Central NJ

n $6,500,000 Financing to Build & Construct a “Virtual” Surgery Center Joint Venture with Regional Hospital – Northern NJ

n $5,500,000 Commercial Mortgage, Surgery Center Term Debt Refinancing & Line of Credit Surgery Center/Leading Infertility Clinic/Real Estate Holding Co.– Northern NJ

n $9,600,000 Financing for Working Capital, Term & Commercial Mortgage Branded Pharmaceutical Company/Real Estate Holding Co.– Southern NJ

At Provident Bank, we understand that healthcare businesses have unique banking needs. Our local healthcare lenders customize lending solutions and fast financing for all types of medical practices, partnerships and physician/dental/veterinary groups. • Equipment financing/lines of credit • Physician buy-in and buy-out loans • 85% loan-to-value for commercial mortgages • Ambulatory Surgical Center Financing

Call our commercial healthcare lender today! John Bolich, SVP John.Bolich@ProvidentNJ.com 973.656.2441

ProvidentNJ.com

87 branches in NJ & PA to serve you.

Brain Surgeons Seek Exception to Conflict-of-Interest Limit on Hiring Andrew Kitchenman Legislators weigh easing ban on physicians making direct referrals to service providers in which they have financial interest Patients going under the knife for brain surgery want their surgeons to have the best technology and assistance available. But should patients be concerned if their surgeons could profit from the technicians they hire? That question is at the heart of an effort to change the state’s Codey Act, which prevents doctors from referring patients to healthcare services in which the doctors or their families have a financial interest. Neurosurgeons, however, argue that an exemption needs to be made for intraoperative monitoring (IOM), which enables technicians who assist at some medical procedures to track nerve signals that the surgeons can’t see. Those in favor of the change say it’s needed because there’s a shortage of IOM providers, raising the chances that New Jersey will lose patients to neighboring states. In effect, they want to be able to directly employ IOM providers, which means referring their services as needed. But executives with the companies that currently provide IOM services in the state say the proposal is risky. They say that if surgeons could employ the technicians -- or have a financial interest in businesses that employ the technicians -- they would have an incentive to favor one service over another. These executives also say that the technicians would become less likely to raise concerns with surgeons who employ them about mistakes that the surgeons make. Dr. Anthony D’Ambrosio, a Bergen County-based neurosurgeon and assistant professor at Columbia University Medical Center, said it’s becoming difficult to find IOM technicians who are able to deliver the necessary level of services. He added that the quality of the services provided by technicians can determine whether a patient leaves a spinal-cord surgery ready to return to work or permanently disabled. “When used correctly, it’s an amazing adjunct to what we do,” D’Ambrosio said. D’Ambrosio said the current law prevents surgeons from providing incentives to attract the best technicians, since they currently must go through an outside company rather than directly employing the technicians. But IOM company executives countered that surgeons shouldn’t employ technicians. “If the technician were employed by the surgeon, this technician might be a lot less likely to bring up all of the bad things -for lack of better words -- that the surgeon did during the surgery,” said Frank Gazillo, chief operating officer of Fairfield-based Accurate Monitoring. Assemblyman Herb Conaway Jr. was skeptical of the argument. “You really think there’s a danger … because of the changed nature of their relationship, that care’s going to suffer?” Conaway asked, questioning whether “someone’s going to sit silent as some disaster is happening in front of them.” Cheryl Wiggins of Nashville, Tenn.,-based IOM provider Specialty Care said the proposed change risks destroying public trust in the quality of intraoperative monitoring services, if IOM technicians “defer completely to the profiting surgeon’s discretion.” Health insurance companies also were wary of the proposed change. Wardell Sanders, president of the New Jersey Association of Health Plans, said it may be appropriate to make changes to the law, but they should be narrowly tailored, such as limiting the exemption to a specialty like neurosurgery that may have a shortage of technicians. The proposed change, which is supported by the Medical Society of New Jersey, would apply to all operations that use IOM services, including orthopedic and ear-nose-and-throat procedures. Sanders emphasized that the state and federal laws against physician self-referrals exist for good reasons, including providing confidence that doctors’ clinical decisions are free from conflicts of interest and preventing overutilization. A bill was introduced in December to make the change. While it advanced in both the Assembly and Senate, it isn’t scheduled for a vote today -- the final day for legislative votes this session. It could be brought up again next session. The bill, A-4780/S-3246, was released by the Assembly Health and Senior Services Committee on an 11-1 vote. Committee Chairman Conaway, a doctor, sponsored the bill. The Senate Health, Human Services, and Senior Citizens Committee also released the bill, on a 5-2 vote. Among the legislators opposed to releasing the bill was Sen. Richard J. Codey (D-Essex and Morris), who sponsored the original 1989 state law that instituted the state restrictions on doctors having a financial interest in services to which they refer patients. January 2016

HackensackUMC names chief medical officer its new president By Anjalee Khemlani

After searching the country for nearly a year to find the next president of Hackensack University Medical Center, the search committee decided the best person for the job already was in the building. Ihor S. Sawczuk, who currently serves as an executive vice president and the chief medical officer, will assume the role as president April 4, the hospital announced Thursday. Hackensack University Health Network CEO and President Robert C. Garrett, who has held both the health network and medical center CEO and president positions, will continue in his role at Hackensack University Health Network, and ultimately, of Hackensack Meridian Health, once the merger of the two health systems is complete. Garrett, who announced last April that he was stepping down as head of the hospital, said in a release that he is confident HackensackUMC will be in good hands. “For 15 years, HackensackUMC has been fortunate to have Dr. Sawczuk as not only a physician — but as one of our most wellrespected executive leaders,” Garrett said. “His various roles — as executive vice president, chief medical officer, vice president of academic affairs and chairman of the Department of Urology — are a direct reflection of his influence and demonstrated leadership within our medical center and beyond.” Sawczuk also recently received the first academic appointment as professor of surgery at Hackensack’s upcoming school of medicine with Seton Hall University. HackensackUMC was selected as the state’s top hospital, according to the 2015-16 rankings of U.S. News & World Report. It was ranked No. 4 in the metro area. Sawczuk began his time with HackensackUMC in 2001 as chairman of the Department of Urology. Since then, he has helped guide the medical center on a path of clinical, research and academic excellence, according to the release. His emphasis on cutting-edge technology has elevated the Department of Urology to become one of the leading programs in the country. During his tenure as chief academic officer, his commitment to academic advancement was evident in his leadership role in the creation of the upcoming school of medicine, and the oversight of HackensackUMC’s affiliation agreements with Georgetown University School of Medicine and Stevens Institute of Technology. “We are proud to have a physician of Dr. Sawczuk’s stature as an integral part of our leadership team,” Garrett said. “The board and I are confident that the new HackensackUMC president is someone who shares in the values and mission of our great hospital.” The nationwide search produced six finalists for the job.

Barnabas Health makes executive changes, including promoting Sperling, Velez Several leadership changes were announced at Barnabas Health today.

The current CEO and president of the Barnabas Health Behavioral Health Center and Network is retiring Jan. 31. Joe Hicks has been with the facility since 1994, before it became a part of Barnabas. The new CEO and president will be Deanna Sperling, who is currently chief nursing officer and chief operating officer. Sperling has been with Barnabas since 1985, when she started as a registered nurse. Jennifer Velez, new senior vice president of population and behavioral health integration, Barnabas Health. - (BARNABAS HEALTH) Also moving up at the center is Jennifer Velez, who joined Barnabas as a senior vice president of strategy and planning last year. Velez will be taking over as senior vice president of population and behavioral health integration at the Barnabas Health Behavioral Health Center and Network. Velez’s new position is effective immediately. “Velez will focus on the health of our communities, understanding the societal and economic issues of primarily the urban Medicaid populations in Newark, Lakewood and other communities served by Barnabas Health, and correlating needs with improving the health of populations," Barnabas Health said in a statement. "In addition, she will have direct oversight over all aspects of Barnabas Health Behavioral Health.” Meanwhile, at the Community Medical Center in Toms River, interim CEO and President Michael Mimoso will become the permanent CEO and president. Mimoso has worked for a number of health care facilities in New Jersey and New York, including vice president of operations at Robert Wood Johnson University Hospital. Michael Mimoso, CEO and president, Community Medical Center. - (BARNABAS HEALTH)

12 New Jersey Physician

Kennedy signs letter of intent to combine with Jefferson Health By Anjalee Khemlani Kennedy Health , which runs three hospitals in South Jersey, signed a letter of intent Friday to integrate with Philadelphia's Jefferson Health system. The integration is a partnership in which Kennedy will become the South Jersey hub for the expanded health system, according to a joint statement Friday. “Central to the plan is the development of a shared governance model, whereby Kennedy will have equal representation as the other system members on a combined board, along with a few independent trustees.” The boards of both Kennedy and Jefferson said strategic planning for the partnership has been going on for about two years, and unanimously voted to authorize the letter of intent that was signed Friday. “Kennedy and Jefferson share a common vision of what we can accomplish together,” said Kennedy Health CEO and President Joseph Devine. “Having worked successfully with Jefferson on various initiatives since 2011, this proposed partnership will enhance our ability to develop innovative patient care services for our communities.” “Integrating with Kennedy Health is another bold step forward for reimagining health care for patients and their families in our communities,” said Stephen Klasko, CEO and president of Thomas Jefferson University and Jefferson Health. “Kennedy brings critical capabilities as a high-quality, cost-efficient community health system.” When the deal is complete, it would be Jefferson’s fourth acquisition in two years. It also will be the second recent takeover of a New Jersey hospital system by a Pennsylvania one, following AtlantiCare's merger with Geisinger Health System.

Klasko said the recent acquisitions, including Kennedy, are based on Jefferson’s bet that health care is going to be reimagined in the next 10 years. The consumer, in this case patients, is driving changes in the industry the way Netflix has changed home entertainment from the brick-and-mortar Blockbuster model, Klasko said. Similarly, since Jefferson already had a number of New Jersey patients driving over the river for specialty care, it only makes sense to bring care to the patients in their own community. Devine said the move was not a financial one at all, since Kennedy is strong both on that and a clinical front. “In order for us to serve communities better we needed that innovation arm. People nowadays have different expectations,” Devine said. Klasko explained that it was more of an ideas merger. “This is not a hospital merger or even a health systems merger. We are four equal pillars,” Klasko said. The hub-and-spoke business model is not at play here, but rather a hub-and-hub model. Why Kennedy chose a system outside of New Jersey’s borders has a lot to do with the regional connectivity already in place, both Devine and Klasko said. At least a quarter of Jefferson employees live in New Jersey, Klasko said. Jefferson will increase to a $4 billion organization in total, with all recent acquisitions considered, if the deal is finalized with Kennedy. But it won’t stop there, Klasko said. “In the future, when you say Jefferson, people will ask ‘which Jefferson?’ ” he said, hinting at more expansions to come. Jefferson currently has relationships with some of Kennedy’s South Jersey competitors, including Cooper University Health, Rowan University and Inspira Health. “I’m saying to (all three), please jump on board,” Klasko said. Jefferson is also affiliated with University of Pennsylvania medical college. Both Devine and Klasko agreed that nearby hospital competition is a thing of the past, and defragmenting the region’s health care, along with reduced inpatient beds, are the keys to the future. “Hospitals will not be next to each other competing with each other. If you’re thinking that, that’s thinking in the '90s,” Klasko said. January 2016