Court Approves Prime Healthcare's Offer To Acquire Saint Michael's Medical Center in New Jersey
ONTARIO, Calif., Nov. 12, 2015 /PRNewswire/ -- 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 staff 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 staff, 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 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 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 visit www.primehealthcare.com
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. Learn more at www.smmcnj.org.
SOURCE Prime Healthcare Services
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