Prime Healthcare Services said it signed a nonbinding letter of intent to acquire St. Michael's Medical Center, a 271-bed hospital in Newark, N.J., that is part of Catholic Health East.
The deal is the latest in a string of acquisitions that Prime has made as the privately owned for-profit health system seeks to expand nationally
Financial terms of the transaction will not be released until a definitive agreement is reached, a Prime Healthcare spokesman said. The deal is expected to close in early 2013.
“Prime Healthcare is committed to continuing the legacy of St. Michael's and ensuring the community is afforded the best patient care, while upholding the traditions of the medical center,” said Prime Healthcare President and CEO Dr. Prem Reddy in a news release
Prime, based in Ontario, Calif., said last week that it planned to enter the New Jersey market
with its acquisition of St. Mary's Hospital in Passaic, N.J. The system primarily owns hospitals in California but has purchased six hospitals in four other states in the last year. It is also pursuing a deal with Landmark Medical Center in Woonsocket, R.I.
The proposed acquisition of St. Michael's Medical Center comes less than two months after Catholic Health East announced its merger with Trinity Health
, another large Catholic health system.
Catholic Health East owns 23 hospitals in nine states, including St. Michael's Medical Center and three others in New Jersey.
Prime's deal to acquire Saint Michael's Medical Center is subject to regulatory approvals.