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Saint Michael's Medical Center Voluntarily Files for Reorganization Under Chapter 11

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All hospital operations to continue through the reorganization process with no disruption to patients

Newark, N.J., – Saint Michael’s Medical Center today voluntarily filed for Reorganization under Chapter 11. The filing is a prudent and necessary action to preserve the medical center’s financial viability and the jobs of more than 1,400 employees, as well as a continued choice of healthcare for the Greater Newark community. The hospital has sufficient liquidity to remain fully operational during the reorganization process, and patients will see no disruption in services.

“As we navigate the reorganization process, our patients will continue to receive the same high-quality, compassionate care they deserve and expect,” said David A. Ricci, president and CEO of Saint Michael’s Medical Center. “With the continued support of Trinity Health, we are maintaining business as usual for the hospital.”

Saint Michael’s will file a series of motions with the court to ensure the continuation of normal operations including, but not limited to, meeting all employee payroll and benefit obligations, and maintaining physician privileges.

As required by both federal and state law, Saint Michael’s distributed Worker Adjustment and Retraining Notification (WARN) Act notices prior to the filing because a sale outcome is not guaranteed.

The medical center entered into an asset purchase agreement (APA) with Prime Healthcare in February 2013, which was recently amended to facilitate a sale to Prime in the Chapter 11.

"We have responded to the numerous rounds of questions submitted by New Jersey’s Department of Health,” said Ricci. “We are asking for the Department of Health and the Attorney General to act expeditiously to allow the sale of Saint Michael's to Prime Healthcare, so that Saint Michael’s, under the ownership of Prime, can emerge as a financially viable, strong institution, maintain jobs and continue to ensure healthcare choice for those we serve.”

Prime Healthcare Services, the prospective buyer of Saint Michael’s, recognizes the filing as a necessary step to complete the proposed transaction.

“We recognize the urgency of completing this transaction with Saint Michael’s,” said Luis Leon, president of Operations, Prime Healthcare. “We are hopeful that after hearing from the community and the employees at Saint Michael’s, and in light of this most recent development, the state will act quickly to approve the sale and preserve this vital Newark institution.”

Cole Schotz P.C. serves as Saint Michael’s legal advisor and EisnerAmper LLP as financial advisor.

Media Contact:

Cathy Toscano
Director, Communications and Marketing
Saint Michael’s Medical Center
P: 973-596-3804

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