Newark, NJ--Today, the United States Bankruptcy Court for the District of New Jersey
approved Prime Healthcare’s offer to purchase Saint Michael’s
Medical Center in Newark. The Honorable Judge Vincent F. Papalia issued
an order to proceed with the acquisition of the historic community hospital.
Established in 1867, Saint Michael’s Medical Center is a 357-bed
tertiary care, teaching and research hospital located in the heart of
Newark’s business and educational district with a mission of providing
excellent healthcare to the community.
Next steps include obtaining the required regulatory approvals as well
as the required documentation for completing the sale and a final sale
order from the bankruptcy court.
In February of 2013, Prime Healthcare entered into an asset purchase agreement
(APA) with the medical center. On August 10 of this year, Saint Michael’s
voluntarily filed for Reorganization under Chapter 11, a necessary action
to preserve the medical center’s financial viability and jobs of
more than 1,400 employees. Prime Healthcare has remained committed to
saving Saint Michael’s and preserving healthcare choice for the
Central Ward and the greater Newark community.
“Thank you to Judge Papalia for his decision, and we are so grateful
to the Saint Michael's Board for supporting the best interests of
the community and valuing Prime Healthcare’s commitment to saving
Saint Michael's Medical Center," said Luis Leon, President of
Operations for Prime Healthcare. "We are hopeful that following nearly
three years of attorney general review, the state will move expeditiously
and fairly so that Prime Healthcare can preserve and improve this invaluable
healthcare institution for future generations and continue Saint Michael's
more than 150-year legacy to the community."
Tens of thousands of community members have signed petitions in support
of Prime Healthcare’s efforts to save Saint Michael’s. The
Newark City Council passed unanimous resolutions in favor of Prime Healthcare’s
purchase offer, and importantly, Saint Michael’s physicians, nurses
and employees have tirelessly fought for their hospital while always remaining
committed to their patients. During this long process with Saint Michael’s,
Prime Healthcare has already saved four other hospitals in New Jersey
that are continuing to provide quality care in their respective communities.
Prime Healthcare has committed to invest at least $50 million in capital
improvements in the hospital over the next five years, to substantially
hire all employees, maintain or increase current levels of charity care,
and maintain existing health insurance contracts.
"For nearly three years now, Prime has remained committed to Saint
Michael's Medical Center," said David A. Ricci, president and
CEO, Saint Michael's Medical Center. "It's been a long road
and, today, we are another step closer to securing a vibrant future for
our medical center, the community we serve, and our dedicated physicians
and staff. We hope the state will approve the sale promptly and look forward
to continuing our legacy under Prime's leadership."
Prime Healthcare, and the non-profit Prime Healthcare Foundation, employ
nearly 40,000 people and own and operate 38 acute care hospitals in 11
states. Prime Healthcare was
recognized as a Top 15 Health System in the nation in 2013 and 2012 and is the fastest growing health system
in the United States, according to Modern Healthcare.
“Prime Healthcare looks forward to expanding its presence in New
Jersey and partnering with the dedicated physicians, nurses and employees,"
said Prem Reddy, MD, FACC, FCCP, Chairman, President and CEO of Prime
Healthcare Services and Foundation. "All of us at Prime Healthcare
are moved by the overwhelming support from the community, elected officials
and Saint Michael’s staff. We believe that exceptional healthcare
should be part of every community. We are committed to maintaining Saint
Michael’s high quality and compassionate care that this community
has relied on for nearly 150 years.”
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 Services and Foundation:
Prime Healthcare Services is an award-winning national hospital system
with 38 acute-care hospitals providing more than 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 Californiaand one of the largest hospital
systems in the
country, Prime Healthcare is committedto 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 beenrecognized by The Joint Commission among the "Top Performers on Key QualityMeasures" in 2014.
For more information, please visit www.primehealthcare.com
Cathy Toscano, Director of Communications
Marketing and Public Relations
Saint Michael’s Medical Center
(O): 973.596.3804 / (C): 973.803.2055
Reviewed by Cathy Toscano on November 12, 2015