Surplus of beds affects fate of Newark's landmark hospital

When Saint Michael's Medical Center, a 150-year-old Newark institution, filed for bankruptcy this summer, it set in motion a process to determine the community hospital's future. It also raised the prospect that the state would use a deal on St. Michael's to re-shape Newark's healthcare landscape. Nearly a third of city residents currently travel outside Newark for their hospital services. And a new report commissioned by the state suggested all Newark-area hospitals would fare better if Saint Michael's was converted to an outpatient facility. Prime Healthcare, a for-profit hospital chain based in California, offered to buy the hospital, keep it open for five years and save about 1,400 jobs if New Jersey approved the $62 million deal.