EAST ORANGE, NJ — Prospect Medical Holdings completed its acquisition of East Orange General Hospital on Tuesday, March 1, helping ensure the community health care provider’s future as an acute care hospital; Otis L. Story Sr. was named the hospital’s permanent president and chief executive officer, according to a press release from Prospect Medical Holdings. The purchase agreement calls for the creation of an advisory board to made up of current East Orange General Hospital trustees and other community leaders.
The transfer of ownership follows the approval of Prospect’s bid by U.S. Bankruptcy Judge Vincent F. Papalia on Wednesday, Jan. 20. The state Department of Health and the state attorney general also have approved Prospect’s acquisition of East Orange General Hospital.
Prospect is nationally recognized for its track record of working with urban safety net hospitals in communities similar to East Orange. At its other hospitals across the country, Prospect has implemented its coordinated regional care model that emphasizes coordination of care and population health management, with an emphasis on wellness and preventive care.
According to Prospect, the company is committed to strengthening the existing programs that the East Orange and Essex County communities have come to rely on and to introducing new services designed to help meet residents’ needs.
Prospect has committed to provide in excess of $50 million in operational and capital investments at East Orange General Hospital for the next five years; maintain the hospital as an acute care facility; retain the hospital’s employee and physician base; provide working capital funding; and assume all of East Orange General Hospital’s outstanding debt.
The commitment also includes the establishment of a community health improvement initiative allowing the hospital’s foundation to work directly with patients, families, physicians and community leaders to promote wellness, according to the release.