St. Michael's Hospital files for bankruptcy

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

St. Michael's Medical Center files for bankruptcy and hopes for a state deal.

St. Michael's Medical Center files for bankruptcy and hopes for a state deal. (8/13/15)

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.

advertisement | advertise on News 12

Trending Video

A 36-year-old woman was beaten and raped in 1 Woman beaten, raped at gunpoint in Highland Park
Crews battled a large fire at the Marcal 2 Crews battle fire at Marcal Paper building in Elmwood Park
Two Ridgewood firefighters were hurt battling house fire 3 2 firefighters hurt battling house fire in Glen Rock
Choices and Chances: NJ’s Heroin Epidemic 4 Choices and Chances: NJ's Heroin Epidemic
Two Ridgewood firefighters were hurt battling house fire 5 2 firefighters hurt battling house fire in Glen Rock

advertisement | advertise on News 12

Features

It's good to know you have Walt Kane Kane in Your Corner

It's good to know you have Walt Kane in your corner.

News 12 takes a look at the hottest Tech Check

Eric Landskroner has a look at the latest gadgets and biggest stories in tech.

News 12 On the Scene

Check out these exclusive videos from New Jersey celebs!

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE