Saint Clare’s Health System Board Recommends Ascension Health Care Network
The Saint Clare’s Health System board and CHI announced a decision to seek a new owner for Saint Clare’s Health System, Denville, NJ.
The board recognized that as health care reform continues to evolve, it will be critical for health providers to be part of a broad network of coordinated health care organizations including health providers, payers and other related health entities. By being part of a geographically proximate network of health providers in northern New Jersey, Saint Clare’s will be better positioned to meet the needs of the communities it serves.
The Saint Clare’s Health System board recommended Ascension Health Care Network, Inc., an affiliate of Ascension Health, St. Louis, MO, as its new owner to CHI. This recommendation follows a year-long evaluation of strategic alternatives and discussions with Catholic, not-for-profit and for-profit health care organizations that expressed interest in Saint Clare’s.
The parties have agreed to enter into exclusive negotiations with the intent of signing a non-binding Letter of Intent to transfer ownership of Saint Clare’s Health System to Ascension Health Care Network. Terms of the agreement will be negotiated and it is expected that a Definitive Agreement will be reached by June 30, 2012, with the transaction closing scheduled before the end of the calendar year.
Ascension Health Care Network has committed to maintain Saint Clare’s Health System’s Catholic identity and honor its legacy.
The transfer will require approvals from CHI, federal, state and Church authorities.