Navigant Recommendations Would Drive Newark Residents Out of City for Care
New analysis by Saint Michael’s Medical Center identifies flaws in
Newark, N.J. – 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.
“We believe that this further examination of Navigant’s projections
makes clear that Navigant’s vision would spell healthcare disaster
for the people of Newark,” said David A. Ricci, president and CEO
of Saint Michael’s Medical Center.
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 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 findings of the supplemental report include the following:
- The Navigant recommendations would affect healthcare capacity so dramatically
that thousands of Newark residents who now use Newark hospitals would
be forced to seek patient care outside the city.
- The Navigant recommendations would result in substantially overall higher
costs to the healthcare system by recommending a shift from lower-cost
facilities to higher-cost facilities.
- The Navigant projections are riddled with errors, and completely ignore
most of the costs involved in implementing its recommendations.
“The only way to ensure access to care and to limit healthcare costs
in Newark is for the state to promptly approve the acquisition of Saint
Michael’s Medical Center by Prime Healthcare,” said Ricci.
“It is time for the state to reject these flawed Navigant findings
and to seek a solution that represents the best interests of the people
of Newark.” The supplemental report can be viewed
The report was authored by David Ettinger, an antitrust lawyer who has
worked in the healthcare field for more than 35 years, and Dennis Pettigrew,
Saint Michael’s Medical Center’s Chief Operating Officer and
Chief Financial Officer.
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 currently a member of Trinity Health. Learn more at
About Prime Healthcare
Prime Healthcare is a national hospital system with 34 acute-care hospitals
providing more than 35,000 jobs in 11 states. Based in California and
one of the largest hospital systems in the country, Prime Healthcare is
committed to ensuring access to quality healthcare. Learn more at