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.