The New Jersey State Health Planning Board has unanimously recommended the sale of Denville, N.J.-based Saint Clare's Health System to Ontario, Calif.-based, for-profit Prime Healthcare Services, according to a Daily Record report.
Saint Clare's has struggled financially in recent years, reporting a $14.8 million deficit in fiscal year 2010 and a $25.8 million deficit in 2011. Saint Clare's and its parent company — Englewood, Colo.-based Catholic Health Initiatives — signed an asset purchase agreement with Prime last year under which Prime would acquire all of Saint Clare's assets except the Saint Clare's Foundation.
However, due to concerns about legal action against Prime (which has recently dealt with several legal issues and allegations surrounding Medicare billing), the New Jersey board specified 30 conditions for the acquisition of Saint Clare's, such as requirements for regular and continuing care for indigent patients and the necessity of written approval from the state to reduce, relocate or eliminate any community health programs, according to the report.
New Jersey Health Commissioner Mary O'Dowd now has 120 days to act on the board's recommendation. Ms. O'Dowd and Attorney General John J. Hoffman recently approved the sale of St. Mary's Hospital in Passaic, N.J., to Prime.
More articles on Prime Healthcare:
Prime Healthcare purchase of St. Mary's Hospital approved by N.J. judge
New Jersey officials approve St. Mary's Hospital sale to Prime Healthcare
10 things to know about Prime Healthcare Services