Trinity Health expects a $75M to $100M loss on sale of Lourdes Health System to Virtua Health

Trinity Health, one of the nation's largest Catholic health systems, said Tuesday that it expects to record a loss of $75 million to $100 million on the sale of Lourdes Health System to Virtua Health.

The definitive agreement, reached Monday, includes Our Lady of Lourdes Medical Center, Camden; Lourdes Medical Center of Burlington County, Willingboro; Lourdes Medical Associates, and Lourdes Cardiology Services. The two nonprofit health systems had announced a preliminary agreement in March. Financial terms were not disclosed.

In the nine months ended March 31, Lourdes had a loss of $20.1 million on $400.5 million in revenue, compared to a loss of $15.6 million on $397.4 million in the same period a year earlier. The sale includes the transfer of $99 million in property and equipment.

Trinity previously had a deal to sell Lourdes and St. Francis Medical Center in Trenton to Cooper University Health Care, which backed out of a nonbinding letter of intent in December, alleging that during due diligence it found problems that would have put it at risk financially. Cooper was going to pay $150 million to Trinity, which Trinity was going to use to pay debts and other obligations of Lourdes and St. Francis.

The combined Virtua and Lourdes operations would have about $1.8 billion in annual revenue and about 1,500 beds in five hospitals.

Virtua and Lourdes officials declined to comment beyond a news release. The transaction required regulatory and canonical approvals.