Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Another potential bidder joins Barnabas and Prime in fight for bankrupt NJ hospital

Saint Michael's Medical Center in Newark, N.J., a subsidiary of Livonia, Mich.-based Trinity Health, filed for chapter 11 bankruptcy protection Aug. 10, and now the financially troubled facility potentially has four buyers interested in it.

The state has been considering the sale of Saint Michael's to Ontario, Calif.-based Prime Healthcare Services since December 2012. In August, while waiting for a decision regarding the deal with Prime, Saint Michael's attracted another potential buyer — West Orange, N.J.-based Barnabas Health. Prospect Medical Holdings, a for-profit hospital chain based in Los Angeles, is also interested in the hospital.

Now, a fourth potential buyer has emerged. The New Jersey Health Care Facilities Financing Authority was identified as a potential bidder in an email between attorneys involved in the hospital's bankruptcy proceedings, according to an NJ Spotlightreport.

Supporters of a state bid for the hospital say that owning Saint Michael's would allow the state to reshape the future of healthcare in Newark, possibly by converting the hospital into an outpatient center — a recommendation made by Navigant Consulting in March.

More articles on healthcare industry transactions:

Montefiore expands New York hospital network
Hartford HealthCare calls off merger talks with Day Kimball, blames pending Medicaid cuts
8 recent hospital transactions and partnerships

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.