"It is an honor and a privilege for me to lead a hospital that has served the community so well for 150 years," Iannaccone said. "I look forward to working with our employees and medical staff as we begin a new chapter in Saint Michael's that builds upon our mission of providing quality healthcare to the community."

Iannaccone replaces David Ricci, who served as the hospital's CEO since July 2011.


"I want to thank David for providing a steady hand during his tenure at Saint Michael's," said Luis Leon, president of Prime Healthcare, Division II. "His leadership over the last three years has helped ensure the success and survival of Saint Michael's, and we wish him the very best in his future."

Prime Healthcare's acquisition comes more than three years after the company first applied to state agencies for approval to purchase the financially struggling hospital. As a result of the delays, the hospital was forced to seek Chapter 11 reorganization in U.S. Bankruptcy Court. During the bankruptcy proceedings, the hospital was put out to bid and Prime Healthcare submitted a winning $62 million bid, about $12 million more than its original offer. As part of its bid, Prime Healthcare agreed to increase its investment from $25 to $50 million to upgrade technology, services and continue to modernize the hospital over the next five years.

Prime Healthcare has hired substantially all of Saint Michael's employees and has already reached agreements with the hospital's three labor unions, which represent more than 780 of the hospital's 1,357 employees.

The sale of the hospital to Prime Healthcare was widely supported by the community. The Newark City Council, the Belleville Township Council and the Essex County Board of Freeholders all passed resolutions urging the state to approve the sale. In addition, some 50,000 people signed a petition urging the administration of Gov. Chris Christie to approve the sale.

Newark Central Ward Councilwoman Gayle Chaneyfield Jenkins, who led the effort to save the hospital, said Saint Michael's would have surely closed if the purchase was not approved.

"There should be no doubt in anyone's mind that Prime Healthcare has saved Saint Michael's along with nearly 1,400 jobs that we could not afford to lose in this city," Chaneyfield Jenkins said. "Instead of an empty hospital building, we will continue to have a thriving hospital in the heart of the Central Ward and Prime Healthcare's investment of $50 million will ensure our residents will have a state-of-the art healthcare facility that is second to none."

Mergers and Acquisitions Homepage