Saint Michael's Still Awaits State Approval for Hospital Sale to Prime Healthcare

Saint Michael's Still Awaits State Approval for Hospital Sale to Prime Healthcare

04-13-2015

Saint Michael's Still Awaits State Approval for Hospital Sale to Prime Healthcare


Saint Michael's and Prime Healthcare signed an Asset Purchase Agreement (APA) in February 2013. More than two years later, the hospital is still awaiting state approval, so it can move forward with this transaction and continue to provide high-quality healthcare to the residents of the greater Newark area.

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Saint Michael's Releases Second Round of Findings Concerning the Navigant Report

Saint Michael’s Medical Center today released a second round of findings concerning the state-commissioned report by Navigant Consulting recommending the consolidation and closing of healthcare facilities in Newark. According to the supplemental report, thousands of Newark residents would be forced to seek hospital care outside of the city if the flawed recommendations were to be enacted. In Navigant’s own words, these patients would be “redistributed” out of the city.

In April, Saint Michael’s issued its initial response to the Navigant recommendations, citing the recommendations’ potential to create a “healthcare monopoly,” leading to as much as $180 million in increased prices for hospital care in Newark. The full report is available here.

The supplemental report assesses, in greater detail, both the impact on patient access within the city limits and the further increase in healthcare costs that would result from Navigant’s recommendations. The supplemental report is available here .

Securing a Vibrant for Saint Michael's Medical Center

Saint Michael's Medical Center has faithfully served the greater Newark community for nearly 150 years. In recent years the medical center has struggled to meet the financial challenges of today’s rapidly changing healthcare landscape and in 2012, set out to find a solution to sustain the medical center’s mission and help it flourish both financially and clinically.

After an extensive solicitation and competitive review process, Saint Michael’s Medical Center conducted negotiations with a number of entities that expressed interest in purchasing the medical center. This competitive process was managed by Catholic Health East leadership in concert with Bank of America Merrill Lynch (BAML).

Prime Healthcare was selected as the most viable option to financially stabilize and secure a vibrant future for Saint Michael’s Medical Center, ensuring it not only remains open as an acute-care facility, but also grows and prospers.

Prime Healthcare Services is the Right Partner for Saint Michael’s Medical Center

Shared Commitment to Make Saint Michael’s One of the Best in
New Jersey
  • Prime Healthcare will provide financial stability to ensure the medical center not only remains open as an acute-care facility, but grows and prospers.
  • Prime brings the necessary resources and award-winning expertise to revitalize Saint Michael’s Medical Center and continue the medical center’s healing mission for residents of the greater Newark community.
Shared Commitment to Saving Jobs
  • Prime Healthcare’s motto is "Saving Hospitals, Saving Jobs and Saving Lives."
  • The medical center currently employs more than 1,400 nurses, allied health professionals, and staff.
  • The medical center is home to 500 physicians.
  • The medical center employs more than 80 residents and fellows.
  • Prime has pledged to hire substantially all Saint Michael’s employees and physicians in good standing at the time the sale is finalized.
Shared Commitment to Charity Care
  • Prime is committed to seeing Saint Michael's continue its ministry for many years to come.
  • Prime will continue to provide charity care at levels similar to those that are currently provided by Saint Michael’s.
  • Prime will uphold the Ethical and Religious Directives for Catholic Health Care that has informed our care.
  • Since 2010, Prime Healthcare has spent more than $2 billion in charity and uncompensated care.
Shared Commitment to Quality
  • Prime hospitals have been recognized among the “100 Top Hospitals” in the nation 27 times by Truven Health Analytics (formerly, Thomson Reuters).
  • Prime Healthcare has been recognized as one of the “15 Top Health Systems” in the nation three times.
  • The Joint Commission, the largest Medicare accreditation organization in the nation, ranked eight Prime Healthcare hospitals as “Top Performers on Key Quality Measures” in 2013.
Shared Commitment to Improving Patient Care and Experience
  • Prime Healthcare will invest at least $25 million on capital improvements beyond routine replacements and additions.
  • Prime’s investments will give patients access to state-of-the-art facilities and medical equipment.
  • Prime will continue to serve Medicare patients.
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