Healthcare Dispute: Trinity Health Refuses to Pay $12 Million Owed to Virtua in Litigation over Lourdes Acquisition.

In 2019, Virtua Health filed a lawsuit against Trinity Health in New Jersey federal court. The lawsuit sought reimbursement for legal fees and other costs totaling over $12 million related to a transaction that occurred between the two nonprofit health systems. The dispute stems from Virtua’s acquisition of the two-hospital Lourdes Health System from Trinity, which was challenged by another South Jersey hospital, Deborah Heart & Lung Center in Browns Mills.

Deborah claimed that the sale to Virtua would violate a contract they had with Lourdes regarding cardiology services in Burlington County. With the anticipation that Deborah would take legal action, Virtua refused to finalize the deal unless Trinity agreed to indemnify Virtua for any losses resulting from Deborah’s lawsuit, which Trinity accepted as evidenced by an added indemnity clause in the sales agreement.

The litigation with Deborah was resolved in September, however, Trinity is now refusing to pay the $12 million owed to Virtua. Despite its large revenue of $21.6 billion in fiscal 2023, Trinity is citing this small fraction of their litigation budget as a reason for not paying up. This is not the first time a South Jersey health system has taken legal action against Trinity over the sale of Lourdes; Cooper University Health Care previously backed out of a deal in 2017 and attempted to recover $15 million they had put in escrow.

Virtua declined to comment on the ongoing litigation while Trinity did not respond to requests for comment.