Saint Peter’s sues RWJBarnabas over OB-GYN practice (updated)

Saint Peter’s Healthcare System filed a complaint against RWJBarnabas Health and one of its own former board and staff members Oct. 14.

Among several allegations cited in the lawsuit, the independent New Brunswick healthcare provider asserts a conspiracy to divert a longstanding OB-GYN practice, along with millions in business, away from Saint Peter’s and toward its local competitor.

In 2022, Saint Peter’s and RWJBarnabas Health called off plans to merge after failing to receive approval from the Federal Trade Commission. The FTC had moved to block the deal due to the adverse impacts it would on competition for care in Middlesex County.

Alleged misuse

The complaint also names Dr. Maureen Cernadas. The former leader of the Brunswick Hills OB/GYN-Axia Women’s Health Group also previously served as a member of Saint Peter’s board of governors and the Saint Peter’s University Hospital Board of Trustees (as board member).

As alleged in the complaint, RWJBH and Cernadas misused confidential Saint Peter’s information in violation of her fiduciary duties. According to the complaint, she had access to sensitive information about SPUH’s operations, finances and strategic plans, including the strategic importance of the Brunswick Hills practice’s business for Saint Peter’s bottom line.

In 2025, patient care activity associated with the Brunswick Hills practice generated net patient revenue of roughly $28 million for SPUH, according to the filing. Practice physicians also performed a substantial share of surgeries and deliveries at Saint Peter’s.

Saint Peter’s says Cernadas had been on staff for almost 30 years. She tendered her resignation from the  board in April 2026 citing “personal reasons,” the complaint says.

The new OB-GYN practice

Nine doctors, including Cernadas, left the Brunswick Hills group in May and then launched a new practice, Mid-Jersey OBGYN, later that month.

Saint Peter’s alleges the defendants planned the move before that, with efforts to conceal it from SPUH, as well as to steer patients to the new practice and RWJBH.

“Barnabas Health had found the perfect co-conspirator in Dr. Cernadas: not only was she the head of a successful OB/GYN practice in Middlesex County, but she was also a member of the Saint Peters Board of Governors. From this perch she was privy to the most sensitive information about Saint Peters’ operations, strategic planning, and finances — information which spanned not just Saint Peters’ OB/GYN services, but its entire range of services”

The lawsuit follows a separate case filed earlier this year involving certain individual Brunswick Hills physicians, RWJBarnabas Health and Axia (Regional Women’s Health Group LLC). That case asserts a wide-ranging conspiracy between RWJBH and the doctors stemming from Cernadas’ and her colleagues’ exit from Brunswick Hills to form Mid-Jersey OBGYN Partners as part of a joint venture with RWJBarnabas. A trial is set for March 2027, according to court filings.

‘David-and-Goliath’ moment

“We believe the actions taken by RWJBH and Dr. Cernadas are improper, unethical and, simply stated, unacceptable,” said Saint Peter’s Healthcare System President and CEO Leslie Hirsch.

“As our lawsuit also alleges, their actions, more importantly, represent something larger than a dispute between organizations and reach well beyond fair and legal competition,” Hirsch said. “They threaten the ability of an independent, Catholic healthcare organization to continue fulfilling its mission. In many ways, this is a David-and-Goliath moment.”

SPUH seeks financial damages, the return and destruction of confidential information, neutral forensic examination, and court orders to prevent further harm. It also seeks to recover profits and competitive benefits allegedly gained by RWJBarnabas and is asking the court for preliminary and permanent injunctive relief.

“Where a mother chooses to deliver her baby is a deeply personal decision, made in consultation with the physician she trusts. Physicians are free to choose where they practice, and patients are free to seek care where they choose. We are proud that more families and providers entrust their care to RWJBarnabas Health, New Jersey’s academic health system, every day,” George Helmy, executive vice president and chief corporate affairs officer for RWJBarnabas Health, said in a statement.

“RWJBarnabas Health has not sought, received, or used any confidential Saint Peter’s information, and these allegations are without merit. We will respond in court, where this matter belongs.”

Representation for Cernadas was not immediately clear.

This story was updated at 12:57 p.m. on Oct. 15, 2026, to include a statement from RWJBarnabas Health.

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