Healthcare Business News

N.J. hospital deals fizzle for Ascension joint venture

By Melanie Evans
Posted: August 4, 2012 - 12:01 am ET

St. Joseph's Healthcare System, Paterson, N.J., announced it ended acquisition talks with the Ascension Health Care Network, a joint venture between Ascension Health and a private-equity firm.

St. Joseph's board rejected an asset-purchase proposal “following extensive analysis and careful consideration of all aspects” of the offer, a statement from St. Joseph said.

Ascension Health Care Network said the decision ended its pursuit of St. Mary's Hospital in Passaic.

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“The agreement with St. Mary's was always contingent on the completion of deal with St. Joseph's Healthcare System,” said Leo Brideau, president and CEO of the Ascension Health Care Network, in a statement. A deal for St. Joseph “was unfortunately voted down and now presents an uncertain future for St. Mary's Hospital.”

Michael Sniffen, president and CEO of St. Mary's Hospital, said in a statement the 221-bed hospital would talk with state officials “to determine what role St. Mary's will play in continuing to deliver healthcare services” in the Passaic area.

Talks with St. Joseph and St. Mary's were first announced in February.

The Ascension Health Care Network was announced in February 2011 by Ascension Health, the nation's largest Catholic health system, and Oak Hill Capital Partners as a for-profit venture to acquire Catholic hospitals.

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