By Beth Fitzgerald, NJBIZ
Saint Michael’s Medical Center in Newark on Monday announced an academic affiliation with New York Medical College in Valhalla, N.Y., that designates Saint Michael’s as a site for the medical college to train physicians. The Hospital is located in the James Street Commons historic district, near the downtown business district and rutgers university campus.
Saint Michael’s, which is seeking state regulatory approval to be acquired by California-based Prime Healthcare Services, is currently affiliated with the Seton Hall University School of Graduate Medical Education. Saint Michael’s spokeswoman Cathy Toscano said, “We have given Seton Hall one-year’s notice of our intent to work with New York Medical College beginning in July 2015.”
The Newark hospital said the deal with New York Medical College provides access to medical expertise and will help it recruit physicians and the college said the deal will help expand its residency options for its students.
Asked why the hospital was switching from Seton Hall to New York Medical College, Toscano said, “New York Medical College is one of the oldest medical schools with an outstanding reputation. We believe this academic affiliation offers us a great opportunity to enhance and expand our programs.”
On the merger with Prime, Toscano said the hospital continues “to move forward with the regulatory process and we are cooperating with both the Attorney General’s office and the Department of Health to answer completeness questions as we move ahead. The timeline is determined by the state and we continue to work within their timeline.”
The original offer from Prime in its letter of intent two years ago was $65 million.
Toscano said Prime was given the exclusive opportunity to perform extensive due diligence which resulted in an offer of $50 million. She said the asset purchase agreement includes a formula that adjusts the actual purchase price based on the financial performance of the hospital.
David A. Ricci, chief executive of Saint Michael’s, said the agreement will “continue our long-standing tradition as an academic institution and enable us to enhance and expand our medical education program, including the addition of an undergraduate program.”
“Saint Michael’s and New York Medical College have a shared and longstanding proud commitment to provide medical care to all who come to us and to educate the next generation of health care providers,” said Dr. Edward C. Halperin, chancellor and chief executive officer, New York Medical College. “This partnership, based upon shared values, will benefit patients, promote a pipeline of new doctors and other health care providers to serve Newark and the surrounding cities, and contribute to the generation of new knowledge about the causes, prevention, and treatment of human disease and disability.”