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Prime Healthcare's purchase of N.J. system from CHI deferred

Ontario, Calif.-based Prime Healthcare Services and Englewood, Colo.-based Catholic Health Initiatives have agreed to defer the effective date of Prime's acquisition of Saint Clare's Health System, a three-hospital system based in Denville, N.J.

The New Jersey Superior Court approved Prime's Community Health Care Protection Act application in June, allowing the for-profit hospital operator to acquire Saint Clare's Health System from CHI.

The deal, which is valued at about $62 million, closed July 31. However, the parties have agreed to defer the effective date of the sale until late summer or early fall.

Until then, Saint Clare's will remain part of CHI.

"Delays are common in complex transactions such as these. Our number one goal is to ensure that all parties involved have the smoothest transition possible," explained Fred Ortega, director of government affairs at Prime, according to a NJ Advance Media report.

Through the transaction, Prime will expand its footprint in New Jersey, as Prime already operates St. Mary's Hospital New Jersey in Passaic. Prime has pledged to hire substantially all employees at Saint Clare's, invest $30 million in capital improvements at Saint Clare's facilities over the next five years, maintain charity care at or above current levels at the hospitals, and will continue to follow the Catholic ethical and religious directives for healthcare services, according to a news release.

In the meantime, CHI has appointed Jon Timmis, CHI vice president of strategy integration, interim CEO of Saint Clare's, effective Aug. 3. 

 

More articles on healthcare transactions and partnerships:

Ascension finalizes acquisition of 4 Tennessee hospitals: 3 things to know
NMBS to open new facility in Missouri
LifePoint Health to buy 80% of Watertown Regional Medical Center: 4 things to know

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