By Briana Vannozzi
Correspondent
Add another chapter to the story that is the years long saga of Saint Michael’s. In an unprecedented move, the state has emerged as a new bidder for the troubled Newark medical center.
“If the financial situation was such that the government was going to take it over, then they should have said so three years ago,” Councilwoman Gayle Chaneyfield Jenkins
Critics are questioning the timing. The proposed sale to a California based for-profit chain, Prime Healthcare, has been under state review since 2012.
“The state controls the school system. The state controls the government, none the less because of the $10 million they loan to the city to control the hiring and bids, and now the state wants to control health care,” said Rev. Ronald Slaughter.
In fact, the state isn’t the only new entity taking interest. Barnabas Health and Prospect Medical Holdings, also a west coast company, recently threw their hats into the ring.
“Right now we have several bidders where two years ago we were told that wasn’t a possibility,” said India Hayes Larrier from the Campaign to Protect Community Healthcare.
Representing a group of Newark stakeholders, Larrier said they don’t believe Prime is the best choice. To keep Saint Michael’s running they’d support New Jersey’s bid.
“We believe that the state is investing in, or protecting, its investment in this hospital and we applaud that. But only if this community is going to be served in the way it needs to be,” Larrier said.
“Rest assured, when the state takes this over, this is going to be turned over to Barnabas and it’s going to be given to them as a gift,” said Jenkins. When asked why she says that, she said, “because this was always the plan in the first place.”
She says, it’s a land grab. If it gains ownership, New Jersey could hire a non-profit, like Barnabas, to run the hospital. There are also financial benefits. If the state takes control of the facility, any revenue would go toward paying off the bonds it issued. However, if Prime buys it, New Jersey is on the hook for Saint Michael’s debt.
There’s also disagreement over a state commissioned report that says Newark has more hospitals than it needs. It recommended converting Saint Michael’s, nearby Newark Beth Isreal and East Orange to outpatient only facilities, while expanding the state-owned University Hospital.
“The Navigant Report is flawed. Its from outsiders that do not live in Newark, that don’t know the violence of Newark, that don’t know the homelessness of Newark, that’s not mentioned in the report,” said Slaughter.
“Anyone who takes this hospital has to do all of the things that we, at the campaign, have been asking for historically; keep the hospital in network, make sure they maintain the services that are necessary to serve the community,” Larrier said.
Both Barnabas and the New Jersey Health Care Facilities Financing Authority, which placed the bid for the state, said they wouldn’t comment while the bidding process continues.