Judge Upholds Sale of Christ Hospital to CarePoint Health

A federal judge has dismissed Ontario, Calif.-based Prime Healthcare Service's suit attempting to block the sale of the bankrupt Christ Hospital in Jersey City, N.J. to CarePoint Health in Hudson City, N.J., according to a Star-Ledger report.

Christ Hospital filed for Chapter 11 bankruptcy in February 2012 after Prime Healthcare withdrew its bid to purchase the hospital and convert it to a for-profit entity in the face of community and union backlash. The for-profit CarePoint then acquired the hospital in July 2012 for $45.3 million, less than Prime Healthcare had offered.

Prime Healthcare then filed suit against CarePoint, accusing CarePoint of being behind the opposition to Prime Healthcare's acquisition of Christ Hospital. Several counts had previously been dismissed, and now the entire suit has been tossed out by U.S. Bankruptcy Judge Morris Stern, who wrote Prime Healthcare "is and shall be permanently enjoined from seeking any relief including damages . . .attributable to purchasing the assets of Christ Hospital," according to the report.

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