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Prime gets final approval to take over bankrupt NJ hospital

After three years, Ontario, Calif.-based Prime Healthcare Services has been given final approval to acquire Saint Michael's Medical Center in Newark, N.J.

Prime agreed to buy Saint Michael's for $62 million and invest $50 million to modernize the hospital. In addition, Prime committed to keep "substantially all" of the hospital's 1,400 employees.

New Jersey began its review of the transaction in December 2012. Saint Michael's officials said the extended consideration of the transaction is the chief reason it filed for bankruptcy last August.

Over the past several months, the New Jersey State Health Planning Board and the state's acting health commissioner, Cathleen D. Bennett, approved the deal.

On Thursday, Essex County Superior Court Judge Walter Koprowski signed the final approval, according to NJBIZ.

"The judge's order brings closure to a long period of uncertainty," Saint Michael's President and CEO David Ricci told NJBIZ. "I am thankful to all those who stood with us and by us during that period. Now we can look forward to a stable future under the leadership of Prime Healthcare that will allow Saint Michael's to continue providing high-quality healthcare to the residents of Greater Newark."

More articles on healthcare industry transactions:

Health insurer UCare to merge with Fairview Health Services
Physicians Realty Trust discloses $725M deal with CHI: 6 things to know
Henry Ford expands Michigan footprint with addition of Allegiance Health

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