Prime Healthcare Services has won in its bid for the financially struggling Saint Michael's Medical Center in Newark, New Jersey, according to Saint Michael's Board of Directors.
Prime will pay $62.2 million, or $13 million in excess of the initial bid submitted of $49 million, for the Trinity Health subsidiary, the board said.
It will invest $50 million in capital improvements, which is $25 million more than initially agreed upon, to continue to modernize facilities and support technology, equipment and services; and to retain substantially all employees and physicians, according to the Asset Purchase Agreement that is expected to be presented to the Bankruptcy Court on November 12.
[Also: Prime to buy River Valley Health Partners]
The agreement also includes continued inpatient and outpatient services; charity care; and honoring the Ethical and Religious Directives for Catholic Health Care.
Saint Michael's filed for Chapter 11 bankruptcy and a competitive auction was held November 5. The hospital board reviewed the two bidders -- Prime and Prospect Medical Holdings -- and chose Prime as the one that could best assure the long-term viability of Saint Michael's, it said.
[Also: Prime sues California attorney general over Daughters of Charity deal]
Prime came to the table with an offer three years ago, according to Saint Michael's President and CEO David Ricci.
"Today, they remain a committed partner and have renewed that commitment by paying $62.2 million and improving several material terms of their asset purchase agreement," he said. "Most critically, the Prime sale will ensure that Saint Michael's has a vibrant future, continues to serve the community and preserves the more than 1,400 jobs of its dedicated staff."
Twitter: @SusanJMorse