Sale of Newark’s Saint Michael’s Medical Center Clears Major Hurdle

Sale of Newark’s Saint Michael’s Medical Center Clears Major Hurdle

“Prime’s plan to invest $50 million into upgrading Saint Michael’s is a game changer for our community,” Chaneyfield Jenkins said. “Not only will this investment create jobs in our community, but our residents will have a world-class, modern medical facility for their healthcare needs. If this sale doesn’t go through, the alternative would be catastrophic to our community.”

On August 10 of this year, Saint Michael’s voluntarily filed for Reorganization under Chapter 11, an action Prime agreed was necessary to preserve the medical center’s financial viability following the protracted application process. Last month, the U.S Bankruptcy Court for the District of New Jersey approved Prime Healthcare’s $62 million offer to buy the hospital; the Honorable Judge Vincent F. Papalia issued an order to proceed with the acquisition.

Both Ricci and Leon credited the community’s involvement in maintaining pressure on the state to preserve the hospital. A coalition of residents, patients, clergy, union members, community leaders, clergy and elected officials led by Chaneyfield collected more than 40,000 signatures urging the state to approve the sale.

Author: Ken Walker

Husband, Father, Newarker, PCA Elder, Business Analyst. In a glass case of emotion since 1978.

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