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Saint Michael's Announces Milestone Toward Completion of Sale to Prime Healthcare Services

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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 we provide.”

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 community dialogue.”

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 insurance contracts.

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

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


Chris Lukach
Representing Saint Michael’s Medical Center

Fred Ortega
Representing Prime Healthcare

Reviewed by Bruno Tedeschi on December 04, 2015