Prime Healthcare Services and Saint Michael’s Medical Center of Newark, N.J., Sign Binding Asset Purchase Agreement
Critical Step in Preserving Saint Michael’s as Acute Care Hospital
Newark, N.J., Monday, February 11, 2013 – Prime Healthcare Services and Saint Michael’s Medical Center announced today they have agreed to and signed an Asset Purchase Agreement. The binding agreement is a critical step forward for Prime Healthcare to finalize its acquisition of the Newark-based medical center. The signing of the APA follows the December 2012 announcement that the two organizations had signed a non-binding Letter of Intent.
The purchase of Saint Michael’s by Prime Healthcare will ensure the medical center remains open and continues its mission to provide excellence in healthcare to the people of Newark and the surrounding communities.
Prime has agreed to maintain Saint Michael’s as an acute care hospital for at least five years and continue to operate the hospital in a manner consistent with the Ethical and Religious Directives that have defined Saint Michael’s. Prime will continue to provide charity care based upon policies that are similar to those that are currently provided by Saint Michael’s and will maintain a local governing board.
“Saint Michael’s Medical Center has faithfully served the Newark community for many generations,” said David A. Ricci, president and CEO, Saint Michael’s Medical Center. “However, in recent years Saint Michael’s has struggled to meet the challenges of today’s rapidly changing health care landscape. After significant deliberation, we determined that Prime Healthcare is best positioned to keep this vital facility from closing. Rest assured, the hospital’s leadership is certain Prime brings the necessary resources and award-winning expertise to revitalize Saint Michael’s and continue our healing mission for residents of Newark for many years to come.”
The APA calls for Prime to hire substantially all Saint Michael’s employees. Moreover, beyond the cost of the acquisition, Prime will invest at least $25 million in capital improvements beyond routine replacements and additions. As a result, Prime will save jobs.
“Prime Healthcare is committed to continuing the legacy of Saint Michael’s and ensuring the community is afforded the best patient care, while upholding the traditions of the medical center,” said Prem Reddy, M.D., FACC, FCCP, chairman, president and CEO of Prime Healthcare Services. “Prime Healthcare’s motto is ‘Saving Hospitals, Saving Jobs and Saving Lives’, and we are confident the medical center will emerge stronger from this transition. The people of Newark need and deserve to continue receiving high quality health care.”
The transaction is pending regulatory approvals, from the N.J. Department of Health and the state Attorney General's office, and canonical approval.
Prime Healthcare, an award winning health system, was nationally recognized in 2012 as one of the “15 Top Health Systems in the Nation” by Thomson Reuters, based on quality of health care and patient satisfaction. It also was recognized as a top health system in 2009. Five Prime Healthcare hospitals were ranked among the “100 Top Hospitals in the Nation” in 2012.
Recently, The Joint Commission, the leading Medicare accreditation organization in the country, announced that eight Prime Healthcare hospitals earned national recognition as a “Top Performer on Key Quality Measures” (Top 18 percent).
Saint Michael’s Medical Center
Established by the Franciscan Sisters of the Poor in 1867, Saint Michael’s Medical Center is a 357-bed regional tertiary care, teaching, and research center in the heart of Newark’s business and educational district. Saint Michael’s Medical Center is a member of Catholic Health East, which includes 35 acute care hospitals, four long-term acute care hospitals, 26 freestanding and hospital-based long-term care facilities, 12 assisted-living facilities, four continuing care retirement communities, eight behavioral health and rehabilitation facilities, 31 home health/hospice agencies and numerous ambulatory and community-based health services. Catholic Health East facilities employ more than 60,000 full-time employees as partners in ministry. Catholic Health East is the largest not-for-profit provider of home health care services—ranked by number of visits—in the nation, as well as the nation’s leading provider of PACE (Program of All Inclusive Care for the Elderly) based on the number of programs.
Prime Healthcare Services
Ontario, Calif.-based Prime Healthcare Services (www.primehealthcare.com), with the motto of “Saving Hospitals, Saving Jobs and Saving Lives,” is one of the largest hospital companies in the nation. Prime Healthcare was recognized as one of the “15 Top Health Systems in the Nation” in 2012 by Thomson Reuters, based on quality of health care and patient satisfaction. It was also recognized as a top health system in 2009. Five Prime Healthcare hospitals were ranked among the “100 Top Hospitals in the Nation” in 2012 by Thomson Reuters. Eight Prime Healthcare hospitals earned national recognition as a “Top Performer on Key Quality Measures,” (Top 18 percent), in 2012, from The Joint Commission, the leading Medicare accreditation organization in the country.
Through their subsidiaries, Prime Healthcare Services and the non-profit Prime Healthcare Foundation have more than 16,000 employees and own and operate 21 acute-care hospitals: Alvarado Hospital Medical Center, Centinela Hospital Medical Center, Chino Valley Medical Center, Desert Valley Hospital, Encino Hospital Medical Center, Garden Grove Hospital Medical Center, Huntington Beach Hospital, La Palma Intercommunity Hospital, Montclair Hospital Medical Center, Paradise Valley Hospital, San Dimas Community Hospital, Shasta Regional Medical Center, Sherman Oaks Hospital and West Anaheim Medical Center – in California; Saint Mary’s Regional Medical Center – in Nevada; Lower Bucks Hospital and Roxborough Memorial Hospital – in Pennsylvania; Dallas Medical Center, Harlingen Medical Center, Knapp Medical Center and Pampa Regional Medical Center – in Texas.