NEWARK - St. Michael's Medical Center in Newark has announced the facility is declaring bankruptcy. However, President David Ricci says that this is actually good news that will keep the hospital's doors open.

President Ricci, hospital executives, doctors and former patients are calling on the state to approve the sale of the hospital to Prime Healthcare. Hospital executives say the deal would allow poor patients on Medicaid to continue receiving care and would also boost the local economy.

"Fifty-million dollars goes to the state," says Ricci. "There are 1,400 jobs preserved to prevent a city with a 10 percent unemployment rate to have more unemployment."

By filing for Chapter 11 bankruptcy, St. Michael's gets to stay open while the state works out the deal with Prime Healthcare. The president believes the hospital should be allowed to stay open until at least the end of the year.

News 12 New Jersey reached out to Gov. Chris Christie's office for comment on the deal, but calls were not returned.