TRENTON – Christ Hospital of Jersey City announced a pending sale today to Prime Healthcare Services of California, owner and operator of 13 acute care hospitals in California.
The sale to the acute care hospital management firm follows shortly after a New Jersey Department of Health and Senior Services report that recommends either consolidation of services or closure of one hospital in Hudson County because there are more beds than patients and the facilities have been relying on state funding to remain solvent.
“The Christ Hospital’s Board of Trustees approved a letter of intent exploring the possibility of an asset purchase agreement with Prime Healthcare Services of Ontario, California,” according to a hospital spokesperson. The hospital, which accepts a high amount of charity care patients, is losing nearly $4 million annually, according to reports.
President and CEO of Christ Hospital Peter Kelly said in the press release, “This is the first step in a process that will continue to assure Christ Hospital’s ongoing success in its mission to meet the healthcare needs of the community. With the financial backing of Prime Healthcare Services, Christ Hospital can look to improve and expand upon our already award-winning healthcare services to better serve the residents of Hudson County consistent with our charitable mission.”
Christ Hospital’s sale is the latest in a rash of hospital sales or closures in the North Jersey county. Like Christ’s pending sale to for-profit Prime Healthcare, Hoboken University Medical Center is in the midst of a sale process to the for-profit owners of Bayonne Medical Center. Liberty Health, owners of Jersey City Medical Center, sold their stake in the Meadowlands Hospital and closed Greenville Hospital in Jersey City in the past few years, both of which were providing care to Hudson County residents.
Bayonne Medical Center and Meadowlands Hospital converted to a for-profit model after their new owners took the reins, and if the sales at HUMC and Christ are approved, four of the six hospitals in the county will have converted to the for-profit models in the past five years.