Cathedral Healthcare System, owned by the Archdiocese of Newark, N.J., signed a nonbinding letter of intent to divest two of its three hospitals to Catholic Health East, a 24-hospital system based in Newtown Square, Pa. The deal includes two Newark hospitals, 223-bed St. Michaels Medical Center and 103-bed St. James Hospital.
Not included in the deal is 175-bed Columbus Hospital, also in Newark. These are three challenged facilities, and CHE officials think theres a better chance of success for the entire system if the deal excludes Columbus Hospital, said Scott Share, a CHE spokesman. Taking on three would be a bigger challenge, he said.
The archbishop of Newark, the Most Rev. John Myers, said in a written statement he hoped the deal will help secure the future of Catholic healthcare in greater Newark.
Terence French, a Cathedral spokesman, said a handful of hospitals have expressed an interest in acquiring Columbus. -- by Melanie Evans