Ontario, Calif.-based Prime Healthcare Services has completed its acquisition of bankrupt Saint Michael's Medical Center in Newark, N.J.
Financially troubled Saint Michael's filed for Chapter 11 bankruptcy last August. The state began reviewing the sale of the hospital to Prime in December 2012, and Saint Michael's said the extended consideration of the transaction is the chief reason it filed for bankruptcy.
Prime has agreed to buy Saint Michael's for $62 million and invest $50 million to modernize the hospital. In addition, Prime has hired "substantially all" of Saint Michael's employees and has reached agreements with the hospital's three labor unions.
With the addition of Saint Michael's, Prime operates 43 hospitals, five of which are in New Jersey.
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