Princeton House and Montgomery-based Carrier Clinic would combine facilities.
By: David M. Campbell
The Medical Center at Princeton is in discussions to join its mental-health program at Princeton House with the Montgomery-based Carrier Clinic, with a possible merger by the end of the summer, spokespersons for both facilities said Wednesday.
It is still too early to discuss specifics about the deal, which has been on the table for about three weeks and is expected to be decided upon in two to three months, said medical center spokeswoman Carol Norris.
"We are talking about combining our mental-health facilities," she said. "We are both two strong organizations in behavioral health, but no definite agreement has been reached yet."
Princeton House, located on Herrontown Road in Princeton Township, is a 70-bed facility employing 170, with 70 additional employees in outpatient care. Princeton House operates clinics in North Brunswick, Cherry Hill, Hamilton, Piscataway and Monroe.
Carrier, a 350-acre facility on Route 601 in the Belle Mead section of Montgomery, has 377 beds and employs 570 on site, with an additional 70 employees in outpatient clinics.
Carrier’s inpatient services offer detoxification and rehabilitation for individuals of all ages with addictive and psychiatric illnesses.
Carrier spokeswoman Lisa Thibault confirmed talks are under way, saying "We are in the early stages of talking about a merger proposal," but adding that "both parties have to assess each other’s financials to see if this would be a good fit. It’s so very early in the process."
Ms. Thibault said it is premature to say what Carrier’s relationship would be with Princeton House or the medical center in general, and said it is unclear whether Carrier would be acquired by the hospital as a subsidiary facility or operate under some other arrangement.
She did say the 70 beds at Princeton House would likely be moved to Carrier but could not elaborate on what impact that action would have on jobs at Princeton House or how the vacated facility would be used after the move.
Ms. Thibault denied that Carrier is considering the merger as a way to address economic difficulties, which have been rumored since the health care provider began closing its seven outpatient clinics last September.
She said, "In some ways, we’re doing better than most (mental health care providers). We have a higher occupancy rate than any other hospital in the state."
But Ms. Thibault acknowledged there have been financial troubles at Carrier and in mental health care statewide, which she said has "fallen on hard times." About 65 percent of hospitals in New Jersey are operating "in the red," she said.
"These are trying times, we’re not being paid for our services, which is the upshot of it," she continued. "We’re one of the last health-care facilities to close our outpatient services. Because of cuts by managed-care providers, it is just not financially feasible."
She added: "It’s not just Carrier. There has been a shift in the mental-health care industry."
Ronald Czajkowski, spokesman for the New Jersey Hospital Association, said Carrier and Princeton House are among the six free-standing inpatient facilities in the state, and that "in general some are doing better than others, but they are all faced with these same challenges. The rules of the game have changed, and the insurance companies are dealing the cards right now."
In addition to these six facilities, he said, there are four state mental- and behavioral-health hospitals and more than 40 hospitals statewide that offer inpatient psychiatric care.
Mr. Czajkowski said of the possible merger of Carrier and Princeton, "They are two strong hospitals with two strong missions and strong track records in the area. They could combine their strengths quite effectively."
Last month, Carrier announced it would be closing its three remaining outpatient clinics in Belle Mead, Freehold and South Plainfield by July 13. About 82 Carrier employees will be affected by those closings.
In September, it closed its Hamilton, Paramus, Toms River and Toms River South facilities.
Carrier President and Chief Executive Officer Richard Sarle said at the time, "The decision was a difficult one to make. However, changes in managed care, Medicaid and Medicare have dramatically limited the funding support for the continuum of care offered by outpatient services."
Mr. Sarle said Carrier would continue to manage outpatient services at its Richard Hall Community Mental Health Center in Somerset County and the Bayshore Community Hospital in Monmouth County.