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Prime Healthcare Foundation's $15M acquisition of CHS hospital collapses

Ontario, Calif.-based Prime Healthcare Foundation's $15 million acquisition agreement to purchase Salem, N.J.-based The Memorial Hospital of Salem County fell through just as the deal received state regulatory approval, according to nj.com.

Prime Healthcare Foundation officials reportedly withdrew the proposal from the New Jersey Department of Health Monday, the same day the department issued the final approval necessary for the deal to close.

A spokesperson for Franklin, Tenn.-based Community Health Systems, which owns the financially ailing hospital, said officials notified hospital employees of their decision to withdraw from the deal Tuesday.

The spokesperson also told nj.com the for-profit operator remains "committed to the success of [CHS'] affiliated hospitals and will review strategic planning for Salem in the coming weeks," according to the report.

A spokesperson from the Prime Healthcare Foundation similarly told nj.com the Foundation will "[continue in] its dedication to creating a strong future for community hospitals and … [is] applying [its] resources to other strategic priorities."

Neither spokesperson commented on why the deal fell through.

CHS initially announced the divestiture of The Memorial Hospital in December 2015.

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