Writer: Joshua Andino
2 min read April 2023— In the latest example of both the competitive nature of the healthcare industry and ongoing consolidation across the landscape, Virtua Health has agreed to acquire Reconstructive Orthopedics.
Announced earlier last week, Reconstructive Orthopedics entered into a letter of intent with Virtua Health to be acquired. While terms of the deal are currently being kept confidential, the new organization will be known as Virtua Reconstructive Orthopedics, and will add eight practice locations, over 60 clinicians and 300 employees to the Virtua network, further cementing it as the largest provider in South Jersey.
“By coming together with Virtua, we multiply our ability to provide comprehensive, trusted care for residents of South Jersey and beyond,” said Dr. Scott Schoifet, president of Reconstructive Orthopedics.
The deal is expected to close in July. In the meantime, patient care will continue uninterrupted. Dr. John Matsinger, executive vice president and COO, noted that Virtua had long referred patients to Reconstructive Orthopedics. “It’s rare to find such alignment, and I am certain our existing relationships will only grow stronger in the months and years ahead,” he said.
Healthcare consolidation has been a long-term trend that was only exacerbated post-pandemic as healthcare organizations looked to right-size budgets and operation focus. Healthcare consulting firm Kaufman Hall’s analysis on the subject identifies labor, expanding geography and adding complementary services as key factors motivating healthcare organizations towards M&A in an increasingly competitive market. “Mounting new pressures on legacy hospitals and health systems during and after the pandemic have highlighted the importance of investing in new capabilities, supporting resources, and business intelligence models,”observes the report.
For Virtua Health, that meant expanding the relationship with Reconstructive Orthopedics. The practice’s Voorhees office is located within the Virtua Health & Wellness Center wing of the Virtua Voorhees Hospital. Reconstructive Orthopedics is one of the largest New Jersey-based medical practices, with over 100,000 surgeries performed and a total of eight medical offices across Burlington, Camden, Cumberland and Gloucester counties. Virtua Health, by contrast, is the largest South Jersey health system, with five acute-care hospitals, a network of 350 facilities in total across the region and more than 1,000 clinicians.
The move is only the most recent transaction this year. Earlier in February, Virtua and San Francisco-based Memora Health announced a partnership to provide better care outcomes through Memora’s clinical intelligence platform. Earlier in 2019, Virtua also acquired Lourdes Health System.
Dennis Pullin, president and CEO of Virtua praised the quality of care Reconstruction Orthopedics has provided the region, saying: “Virtua has long been dedicated to quality health care close to home, and views this as fundamental to a person’s quality of life.” He added, “For decades, the doctors and professionals of Reconstructive Orthopedics have delivered outstanding care to this community and are held in the highest regard by their patients. We are excited and honored to have this caliber of experts join Virtua and to continue this legacy moving forward.”
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