Prime withdraws from deal to buy Memorial Hospital of Salem County

A deal for the sale of The Memorial Hospital of Salem County to California-based for-profit health systems operator Prime Healthcare, which currently operates a Newark facility, fell through Monday.A deal for the sale of The Memorial Hospital of Salem County to California-based for-profit health systems operator Prime Healthcare, which currently operates a Newark facility, fell through Monday.

Prime is the current operator of Saint Michael’s Medical Center in Newark, and one of two out-of-state hospital operators in the state.

A spokeswoman from Prime did not expand the details of the fallout.

“Yesterday, Prime Healthcare Foundation withdrew its CON application from the New Jersey Department of Health,” the spokeswoman said in an email.

“We admire and appreciate the medical staff and employees we’ve come to know at The Memorial Hospital of Salem County, and we thank all those who were involved in the regulatory and due diligence process. Prime Healthcare continues its dedication to creating a strong future for community hospitals and we are applying our resources to other strategic priorities.

“We are continuing to invest in upgrades to our existing facilities, last year spending nearly $230 million in ER expansions, new patient monitoring and IT systems, upgraded radiology equipment, expanding behavioral health units to meet a great need across the United States, and more.”

The sale was first reported in December 2015, followed by the resignation of the CEO one year later.