Denville holds public hearing for St. Clare's sale

DENVILLE – Nearly two dozen people spoke Wednesday afternoon at Denville's Municipal Building, all echoing the same sentiment – support for the sale of St. Clare's Health system to Prime Healthcare.

Sister Johnice Thone, a St. Clare's Board member and member of the Sisters of the Sorrowful Mother – which started the hospital in 1895 - urged swift action by the Attorney General's office.

"St. Clare's is much more than an institution to the people of northern New Jersey, we are a trusted part of their lives," Thone said. "A major employer and active supporter in the community."

The comments were made to Assistant Attorney General Kavin K. Mistry, on behalf of the Acting Attorney General and Assistant Commissioner Susan J. Dougherty, on behalf of the Commissioner of Health, who were listening to public comment at the hearing in accordance with the Community Health Care Assets Protection Act.

Those who spoke included Morris County Administrator John Bonanni, a representative for state Sen. Tony Bucco and Assemblyman Anthony Bucco, and doctors and employees of St. Clare's, Prime, and St. Mary's Hospital in Passaic, all of whom offered support of the proposed sale and asked for quick action.

Denville Mayor Tom Andes - whose daughter is an ER nurse at St. Clare's - said he, Denville administrator Steven Ward and Police Chief Christopher Wagner, were impressed with Prime's work with other hospitals.

"St. Clare's runs Denville's economy," Andes said. "And Prime said it plans to hire nearly all the same employees."

St. Clare's President and CEO Les Hirsch spoke both of the support the St. Clare's community had for the sale, and its necessity to assure the hospital's future.

"Beginning in 2011, St. Clare's faced rapid and permanent changes in the health care environment as well as increased financial challenges," Hirsch said, saying the Board of Director's determined joining a regional network would be the best course of action.

"We believe such a change would better enable St. Clare's to continue its longstanding tradition of service to the people of northwest New Jersey, and secure St. Clare's future ability to meet the health care needs of its patients and the communities we serve."

Hirsch said after reviewing multiple proposals, Prime was the best offer because of the price, its proven track record, and ability to move quickly on a transaction.

Hirsch also noted an agreement for Prime to manage St. Clare's as if it were a Catholic health care provider, a promise to match or exceed current charitable contributions, and plans to build a regional network of health care providers in New Jersey, including St. Mary's in Passaic.

Christina Hutchinson, chief nursing officer for St. Mary's, said through the first seven months after Prime's acquisition of her hospital, they have delivered on every promise made.

"Prime's proposal most closely addressed the long-term best interest of St. Clare's," Hirsch said. "St. Clare's is one of the largest employers in the community. Prime has committed to hire substantially all of St. Clare's employees."

No specific figure on the amount of current St. Clare's employees that would retain their jobs under Prime was mentioned during the hearing.

"In the interest of all those who work at and all those who are served by St. Clare's," Hirsch said. "I urge you to approve Prime's acquisition of St. Clare's."

The Franciscan Oaks retirement community would not be part of the sale, and St. Clare's is looking for a different buyer for the property, Hirsch said.

St. Clare's Medical Staff President Larry Friedman represented more than 800 medical professionals at the hospital.

"Our physicians view St. Clare's as a partner in caring for our patients, and Prime allows this to continue," Friedman said. "We all believe this is the best option given the changing field and economics."

Jim Summersett, regional CEO of Prime, credited the employees of St. Clare's for preserving through the years of uncertainty.

"I know this transition could feel like an eternity," Summersett said. "And I understand the concerns and questions people have approaching the unknown."

Summersett assured people in attendance that years from now they would look back and see that St. Clare's had not changed the core values that made it unique.

"My family needs St. Clare's," longtime Denville resident and St. Clare's Vice President of Medical Affairs Alma Ratcliffe said. "It's the hospital I know and trust, and it's important to my family that it continues to be there."

The floor was open to the general public, but no unscheduled speakers expressed support or lack thereof for the acquisition. The public was given two weeks' notice of the meeting.

Prime's acquisition of St. Clare's has been delayed several times dating back to 2013.

Troy Shell, general counsel for Prime Healthcare, said the company has 27 hospitals in seven states.

"Prime buys distressed hospitals that are in or on the verge of bankruptcy and keeps them open," Shell said. "I'm glad we're close to the finish and urge the Attorney General to approve."

Shell said prime plans to put $10 million into growing the hospital once the sale is complete.

The Attorney General's office now has until June to make a decision on the sale. The Commissioner of Health must also approve the deal.

Staff Writer Michael Izzo: 973-428-6636; mizzo@dailyrecord.com

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