Legal Battle Continues Between Health Systems Over $12 Million in Disputed Fees

Virtua Health has sued Trinity Health in New Jersey federal court for more than $12 million in legal fees and costs associated with a 2019 transaction involving the two non-profit health systems. The lawsuit was prompted by a legal dispute that arose from Virtua’s acquisition of Lourdes Health System from Trinity. However, another South Jersey hospital, Deborah Heart & Lung Center, sued Trinity to block the deal, alleging that it would violate a contract between Deborah and Lourdes concerning cardiology services in Burlington County.

The lawsuit was settled in September, but Trinity refused to pay the $12 million legal fees and expenses for which Virtua is seeking reimbursement. Despite this resolution, the two parties are still engaged in an ongoing legal dispute over payment.

This is not the first time a South Jersey health system has taken legal action against Trinity regarding the sale of Lourdes. In 2017, Cooper University Health Care attempted to recover $15 million placed in escrow as a deposit after backing out of a tentative deal to acquire Lourdes and a hospital in Trenton from Trinity after discovering potential liabilities of up to $100 million during due diligence. A federal jury ruled in favor of Trinity, awarding them the escrowed funds.