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Prime Healthcare's $62.2M bid accepted by bankrupt NJ hospital

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Saint Michael's Medical Center in Newark, N.J., which filed for bankruptcy protection in August, has accepted a $62.2 million bid from Ontario, Calif.-based Prime Healthcare Services, according to an NJ Advance Media report.

The state has been considering the sale of Saint Michael's to Prime since December 2012. In August, while waiting for a decision regarding the deal with Prime, Saint Michael's attracted another potential buyer — Prospect Medical Holdings, a for-profit hospital chain based in Los Angeles.

Prospect offered a strong competing bid of $63 million, but Saint Michael's board of directors determined Prime's $62.2 million deal was better, as Prime has committed to spend $50 million in capital improvements at the hospital over five years.

Saint Michael's President and CEO David Ricci told reporters on Monday he is optimistic the state will approve the sale of the hospital to Prime, according to the report.

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