Ontario, Calif.-based Prime Healthcare Services and Saint Michael's Medical Center in Newark, N.J., have signed a binding asset purchase agreement.
Terms of the deal were not disclosed, although Prime Healthcare officials agreed to invest at least $25 million in capital improvements in the 357-bed Saint Michael's. In addition, the purchase agreement requires Prime Healthcare to hire "substantially all Saint Michael's employees," according to a news release.
The transaction is all but official and now awaits regulatory approval from the New Jersey Department of Health and the state attorney general's office, as well as canonical approval.
Prime Healthcare has been active in the hospital merger and acquisition market since 2013 began. Saint Michael's, which was under the umbrella of Newtown Square, Pa.-based Catholic Health East, is the second hospital the for-profit hospital operator has acquired in New Jersey. In January, Prime Healthcare agreed to purchase St. Mary's Hospital in Passaic, N.J. Also in January, Prime Healthcare bought two Kansas-based hospitals from Sisters of Charity of Leavenworth Health System.
Prime Healthcare also continues to be in the spotlight for alleged federal investigations. Earlier this month, news outlet California Watch reported the hospital chain acknowledged it was involved with two federal probes regarding Medicare billing and alleged violations of patient confidentiality. Prime Healthcare officials have repeatedly said all of its hospitals "are committed to following all state and federal laws and regulations" and that California Watch's reporting is "inaccurate and misleading."
Terms of the deal were not disclosed, although Prime Healthcare officials agreed to invest at least $25 million in capital improvements in the 357-bed Saint Michael's. In addition, the purchase agreement requires Prime Healthcare to hire "substantially all Saint Michael's employees," according to a news release.
The transaction is all but official and now awaits regulatory approval from the New Jersey Department of Health and the state attorney general's office, as well as canonical approval.
Prime Healthcare has been active in the hospital merger and acquisition market since 2013 began. Saint Michael's, which was under the umbrella of Newtown Square, Pa.-based Catholic Health East, is the second hospital the for-profit hospital operator has acquired in New Jersey. In January, Prime Healthcare agreed to purchase St. Mary's Hospital in Passaic, N.J. Also in January, Prime Healthcare bought two Kansas-based hospitals from Sisters of Charity of Leavenworth Health System.
Prime Healthcare also continues to be in the spotlight for alleged federal investigations. Earlier this month, news outlet California Watch reported the hospital chain acknowledged it was involved with two federal probes regarding Medicare billing and alleged violations of patient confidentiality. Prime Healthcare officials have repeatedly said all of its hospitals "are committed to following all state and federal laws and regulations" and that California Watch's reporting is "inaccurate and misleading."
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