Saint Peter's Sues RWJBarnabas Over OB-GYN Practice
The New Brunswick hospital alleges a conspiracy to divert staff and patients to its regional competitor.
Updated on Oct. 15, 2026 in Healthcare
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Saint Peter's Healthcare System has filed a lawsuit against RWJBarnabas Health and Dr. Maureen Cernadas. The complaint alleges the defendants misused confidential information and conspired to divert an OB-GYN practice to RWJBarnabas.
Why it matters
Saint Peter's claims the alleged actions threaten the organization's independent mission and long-term financial stability. The legal dispute highlights the competitive landscape between major healthcare providers in the region.
The Brunswick Hills OB/GYN-Axia Women's Health Group generated $28 million in net patient revenue for Saint Peter's University Hospital in 2025. Nine doctors subsequently left the practice in May 2026.
The players
Saint Peter's Healthcare System
This is a New Brunswick-based healthcare provider that maintains an independent mission within the state.
RWJBarnabas Health
This is a major healthcare system operating across New Jersey and serving as the primary competitor to Saint Peter's in the region.
Dr. Maureen Cernadas
She is a physician who formerly served on the board of governors for Saint Peter's Healthcare System.
The details
The lawsuit alleges that Dr. Maureen Cernadas, a former board member at Saint Peter's, and other defendants planned the practice transition before her formal resignation to steer patients to RWJBarnabas Health. This case follows the termination of a proposed merger between the two hospital systems in 2022 due to Federal Trade Commission opposition.
Timeline
Saint Peter's and RWJBarnabas terminated merger plans in 2022.
The Brunswick Hills practice generated $28 million in 2025.
Dr. Maureen Cernadas resigned from the Saint Peter's board in April 2026.
Nine doctors formed Mid-Jersey OBGYN in May 2026.
Saint Peter's filed its lawsuit on October 14, 2026.
Market Landscape
This litigation follows the collapse of a 2022 merger between the two systems, which was blocked by federal regulators. The conflict highlights the ongoing competition for market share and specialized medical staff in the region.
Patients may see shifts in OB-GYN care availability and provider accessibility within New Brunswick as the litigation proceeds. The outcome of this case could influence future referral patterns and the range of services provided by local practices.
The takeaway
Healthcare institutions often face complex legal battles when staff departures trigger significant shifts in patient volume and revenue. These disputes frequently underscore the tension between independent community hospitals and large regional systems.
What happens next
A separate legal case involving the Brunswick Hills physicians and RWJBarnabas Health is scheduled for trial in March 2027.
Further reading
Read more about regional medical updates in our Healthcare section.
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