NEWARK, NJ -- Saint Michael’s Medical Center announced today it has received notice
from the New Jersey Department of Health that its application to transfer
hospital ownership to Prime Healthcare Services has been deemed complete.
Saint Michael’s initially submitted the Certificate of Need application
to sell the hospital on April 1, 2013. Hospital officials responded to
eight rounds of extensive follow-up questions from the Department of Health
before receiving word of the application’s completeness on Dec. 1.
“We are excited by this latest development since it now means we
can move forward to the next step,” said David A. Ricci, president
and CEO of Saint Michael’s Medical Center. “Achieving this
milestone gives all of us renewed energy as we strive to achieve our goal
of preserving Saint Michael's for the good of the 1,400 employees
and their families who work here, for the members of our medical staff
who have remained loyal to our community and most especially to the greater
Newark community, which remains dependent on the services and care that
The Department of Health has scheduled a public hearing regarding the application
on Tuesday, December 15, 2015, from 6-8 p.m., at the New Jersey Institute
of Technology, 323 Martin Luther King Boulevard in Newark. The hearing
is free and open to the public.
Once the hearing is complete, the State Health Planning Board will meet
early next year to consider the application and make recommendations to
acting state Health Commissioner Cathleen Bennett on whether the sale
should be approved. In addition, acting state Attorney General John Jay
Hoffman must approve the sale.
“Prime Healthcare remains as committed as ever to continuing the
legacy of Saint Michael’s and ensuring the community is afforded
the best patient care while upholding the traditions of the medical center,”
said Luis Leon, President of Operations II of Prime Healthcare Services.
“We are grateful for the state’s action to move forward in
this important process, and we look forward to an engaging and constructive
In addition to agreeing to preserve substantially all of the jobs at Saint
Michael’s, Prime has agreed to invest $50 million to upgrade the
facilities and equipment at the hospital over the next five years, maintain
or increase current levels of charity care, and maintain existing health
On August 10 of this year, Saint Michael’s voluntarily filed for
Reorganization under Chapter 11, an action Prime agreed was necessary
to preserve the medical center’s financial viability following the
protracted application process. Last month, the U.S Bankruptcy Court for
the District of New Jersey approved Prime Healthcare’s $62 million
offer to buy the hospital; the Honorable Judge Vincent F. Papalia issued
an order to proceed with the acquisition.
Both Ricci and Leon credited the community’s involvement in maintaining
pressure on the state to preserve the hospital. A coalition of residents,
patients, clergy, union members, community leaders, clergy and elected
officials led by Central Ward Councilwoman Gayle Chaneyfield collected
more than 40,000 signatures urging the state to approve the sale.
About Saint Michael’s Medical Center
Established by the Franciscan Sisters of the Poor in 1867, Saint Michael’s
is a 357-bed regional tertiary-care, teaching, and research center in
the heart of Newark’s business and educational district. Saint Michael’s
Medical Center is a member of Trinity Health. Learn more at www.smmcnj.org.
About Prime Healthcare Services
Prime Healthcare Services is an award-winning national hospital system
with 38 acute-care hospitals providing nearly 40,000 jobs in 11 states.
Seven of the hospitals are members of the Prime Healthcare Foundation,
a 501(c)3 public charity. Based in California and one of the largest hospital
systems in the country, Prime Healthcare is committed to ensuring access
to quality healthcare. It has been recognized as among the "100 Top
Hospitals" in the nation 33 times and among the "15 Top Health
Systems" three times, and is the only "10 Top Health System"
west of the Mississippi. Our hospitals have been recognized by The Joint
Commission among the "Top Performers on Key Quality Measures"
in 2014. For more information, please visitwww.primehealthcare.com.
Representing Saint Michael’s Medical Center
Representing Prime Healthcare