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For-Profit Company to Acquire Raritan Bay Medical Center in New Jersey

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A new for-profit hospital company is making its way into New Jersey, as Santa Ana, Calif.-based Prospect Medical Holdings and Perth Amboy, N.J.-based Raritan Bay Medical Center have signed a nonbinding letter of intent to join.

The two-hospital Raritan Bay has been looking for a partner to help manage the reimbursement shifts of healthcare reform, "work with the hospital's physicians and staff and grow the hospital's identity within the communities we serve," Raritan Bay President and CEO Michael D'Agnes said in a news release.

Financial terms of the potential acquisition were not disclosed. Raritan Bay and PMH will now work toward a definitive agreement. The transaction will still need state and federal approval.

New Jersey has been a hotbed for for-profit hospital acquisitions. Ontario, Calif.-based Prime Healthcare Services is in the process of buying Saint Michael's Medical Center in Newark, Saint Mary's Hospital in Passaic and Saint Clare's Health System, which includes hospitals in Denville, Dover and Boonton. CarePoint Health, formerly known as Hudson Holdco, has three hospitals within its for-profit system: Bayonne Medical Center, Hoboken University Medical Center and Christ Hospital in Jersey City.

PMH has also been active on the East Coast, recently signing a letter of intent to acquire CharterCare Health Partners, a two-hospital system based in Providence, R.I.

More Articles on Hospital Transactions:

Franciscan Alliance Seeks to Divest 2 Illinois Hospitals
11 Advocacy Groups Call for Hospital Merger Moratorium in Washington
Are National Systems More Successful in Hospital Acquisitions? 4 Findings

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