St. Michael's Medical Center Sale Approved: One Hurdle Left, Newark

Newark, NJ - Saint Michael’s Medical Center in Newark announced that the state of New Jersey has given final approval of its sale to Prime Healthcare Services.

On Wednesday, the two organizations issued a joint news release about the recent state approvals, which come more than three years after Prime Healthcare applied to purchase the 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.

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

On Wednesday, the two entities announced that the NJ Attorney General’s Office approved their application under the Community Health Care Assets Protection Act, and that the state Department of Health has approved its application for a certificate of need.

A NJ Superior Court judge must give final approval before the transfer of ownership is complete.

According to the 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: Newark Union Members: Save Saint Michael's Medical Center

“We have all been waiting a long time for this moment and while there remains much to do before the transaction is completed, we have crossed the most important milestone,” said David Ricci, president and CEO of Saint Michael’s.

Central Ward Councilwoman Gayle Chaneyfield Jenkins, who has been one of the leading voices in the community effort to save the hospital, said the sale will have a positive impact in Newark.

“This is a major victory for the residents of Newark,” Chaneyfield Jenkins said. “It means that 1,400 jobs in Newark will be preserved, it means residents of Newark will continue to have a choice in health care and it means $50 million in private capital will be invested in the heart of our city.”

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