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Thu, Mar 10, 2016

Community, Featured, Politics, The Commons

Sale of Saint Michael’s Medical Center to Prime Healthcare Services Receives Final Regulatory Approvals

BY lyanne

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The state has approved the sale of Saint Michael’s. Press release is attached and below. I noticed that some of you have been using some old and low resolution real estate shots of Saint Michael’s. I took some photos the other day, so feel free to pick one and download in the resolution you need. You are free to use unrestricted, just credit: Saint Michael’s Medical Center.

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

Saint Michael’s received notice that the state Attorney General’s Office approved the application under the Community Health Care Assets Protection Act and the state Department of Health has approved its application for a certificate of need.

The approvals 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.

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

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“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. “Today is a great day for the employees and medical staff of Saint Michaels as well as for the community we serve in Newark and beyond.”

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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.

“We are thankful to the Attorney General’s office and the Department of State for their careful and deliberate consideration, as well as their recommendation to approve this important transaction,” said Luis Leon, President of Hospital Operation for Prime Healthcare. “We look forward to working with the talented physicians, nurses and staff of Saint Michael’s Medical Center, to further their more than 150 year-old mission and to preserve this important healthcare institution for future generations of Newarkers.”

The sale of Saint Michael’s to Prime Healthcare has widespread support in the community. At a hearing in December before the State Health Planning Board, 33 people testified, all in favor of the sale. Among those who testified included patients, employees, doctors, nurses, union representatives, clergy, members of the community and elected officials, including state Assemblyman Tom Giblin, Essex County Freeholder President Britnee Timberlake and members of the Newark City Council, which had unanimously passed a resolution earlier last year supporting the sale.

Central Ward Councilwoman Gayle Chaneyfield Jenkins, who has been leading 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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