Prime Healthcare, a US-based acute care hospitals owner, has completed the acquisition of Saint Michael's Medical Center, a 357-bed acute care hospital located in the Central Ward of Newark.
Saint Michael's, which is a major teaching hospital affiliated with New York Medical College, serves Newark and the surrounding community with key service lines including cardiology and cancer treatment.
Prime Healthcare Services chairman, president and CEO Prem Reddy said: "Prime Healthcare looks forward to working with the physicians, nurses and employees at Saint Michael's Medical Center to ensure the best care for the patients they serve.
"We believe that every community deserves exceptional healthcare close to home. Prime Healthcare hospitals are consistently ranked among the best hospitals in the nation, and we have no doubt that Saint Michael's Medical Center will continue that legacy."
Effective immediately, Prime Healthcare has appointed Robert Iannaccone as the new CEO of Saint Michael's.
As part of the deal, Prime Healthcare has hired substantially all of Saint Michael's employees and has already reached agreements with the hospital's three labour unions, which represent more than 780 of the hospital's 1,357 employees.
The sale of the hospital was supported by the Newark City Council, the Belleville Township Council and the Essex County Board of Freeholders.
Newark Central Ward Councilwoman Gayle Chaneyfield Jenkins said: "There should be no doubt in anyone's mind that Prime Healthcare has saved Saint Michael's along with nearly 1,400 jobs that we could not afford to lose in this city.
"Instead of an empty hospital building, we will continue to have a thriving hospital in the heart of the Central Ward and Prime Healthcare's investment of $50m will ensure our residents will have a state-of-the art healthcare facility that is second to none."