2 Newark hospitals to close
Officials from Cathedral Healthcare System, which is affiliated with the Archdiocese of Newark, voted tonight to accept a proposal from a Pennsylvania company to assume ownership of the financially troubled hospitals.
The deal, which still must be approved by state health officials, will result in the closing of Saint James by mid-March and Columbus by June 1, officials said.
Saint Michael's Medical Center, which was been in Newark since 1867, will remain open and receive more than $100 million in improvements and equipment from the new owner, Catholic Health East of Newtown Square, Pa., according to the agreement.
Cathedral officials said the three hospitals together are losing $6 million a month, leaving them little choice but to make the deal.
Some outpatient services are expected to be offered at Saint James after its closing, but it is unclear whether any kind of primary care will remain at Columbus.
The deal, which does not require any exchange of cash, is subject to the approval of the New Jersey Department of Health and Senior Services.
The state has agreed to guarantee a $250 million bond to pay for capital improvements and debt reduction, according to Thomas Slater, a health department spokesman.
Newark Mayor Cory Booker said he is "furious" about the shutdowns, contending city officials have not been kept up-to-date by Cathedral on plans he feels are now clearly putting the health of city residents in danger. Booker and other city officials on Friday plan to hold a press conference outside Columbus Hospital, which he said may end up with no remaining healthcare services.
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