St. Michael's Hospital: Prime Healthcare Sale Is Complete, New CEO Takes Helm In Newark

Newark, NJ – Prime Healthcare has officially completed its acquisition of St. Michael’s Medical Center in Newark.

According to a hospital news release issued on Tuesday, Prime Healthcare has appointed Robert Iannaccone as the new CEO of Saint Michael’s, “effective immediately.”

Iannaccone replaces David Ricci, who served as the hospital’s CEO since July 2011.

“It is an honor and a privilege for me to lead a hospital that has served the community so well for 150 years,” Iannaccone said. “I look forward to working with our employees and medical staff as we begin a new chapter in Saint Michael’s that builds upon our mission of providing quality healthcare to the community.”

A state Superior Court judge signed off on the sale of the hospital to Prime Healthcare Services in April. The deal came more than three years after Prime Healthcare applied to purchase the financially struggling hospital, and included a detour in U.S. Bankruptcy Court and a second round of bidding that drove up the final sale price to $62 million.

The process was complicated by a report issued last year that recommended Saint Michael’s be closed as an acute care hospital and converted into an ambulatory center.

Faced with uncertainty, the hospital filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in August of 2015.

• See related article: Newark's St. Michael's Hospital: Bankruptcy Court Approves Sale

According to a previous joint statement, Prime has agreed to keep the hospital open as a full service acute care and outpatient facility providing all of its existing services for a minimum of five years, hire substantially all 1,400 hospital employees, maintain or increase current levels of charity care, and maintain existing health insurance contracts.

In addition, Prime has agreed to invest $50 million to upgrade technology, services and continue to modernize the hospital, the statement read.

• See related article: St. Michael's Hospital Sale Gets Final Approval: Greater Newark Stakeholders Celebrate

ROBERT IANNACCONE

According to the hospital news release:

“Iannaccone has more than 25 years of healthcare leadership and operational experience in the New Jersey market. Most recently, he served as senior vice president of Cardiovascular Services at Barnabas Health. Prior to his successful tenure there, he worked for St. Mary’s General Hospital in Passaic, (a Prime Healthcare facility) as executive vice president/chief operating officer, where he was instrumental in the consolidation of two hospitals resulting in the establishment of a sound St. Mary’s.

“Earlier in his career, Iannaccone worked for the Raritan Bay Medical Center as its executive vice president and chief operating officer and Atlantic Health System in senior executive roles responsible for strategy, development and operations, as well as Saint Clare’s Denville (another Prime Healthcare facility) where he served as executive vice president of Business Development and Legal Services.

“Iannaccone has consulted for Memorial Sloan Kettering Cancer Center, and he served as adjunct professor of health organizations and management at Farleigh Dickinson University Center for Healthcare Management Studies and Silberman College of Business. He received his MBA from Rutgers University School of Business and his law degree from Seton Hall Law School. Robert is also a councilman in Morristown, where he lives with his wife, Karen, and two sons.”

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