St. Mary's Hospital of Passaic, N.J., announced it has signed a binding asset purchase agreement with for-profit hospital operator Prime Healthcare Services.
St. Mary's signed a letter of intent with Ontario, Calif.-based Prime in November 2012 that at the time listed the purchase price at $25 million, though the actual agreed-upon price has not been disclosed, according to a report by The Record.
Terms of the agreement stipulate that St. Mary's, the only hospital remaining in its area after two others closed, must remain an acute-care hospital for at least five ears.
Prime, which operates 21 other acute-care hospitals across the country, will maintain a local governing board, but it must follow St. Mary's charity and ethical care policies, honor the existing collective bargaining agreement for unionized employees and invest $30 million in capital improvements during the five-year period.
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St. Mary's signed a letter of intent with Ontario, Calif.-based Prime in November 2012 that at the time listed the purchase price at $25 million, though the actual agreed-upon price has not been disclosed, according to a report by The Record.
Terms of the agreement stipulate that St. Mary's, the only hospital remaining in its area after two others closed, must remain an acute-care hospital for at least five ears.
Prime, which operates 21 other acute-care hospitals across the country, will maintain a local governing board, but it must follow St. Mary's charity and ethical care policies, honor the existing collective bargaining agreement for unionized employees and invest $30 million in capital improvements during the five-year period.
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