Hammond Hanlon Camp LLC Advises on the Sale of Saint Clare's Health System in Denville, New Jersey to Prime Healthcare Services
posted on March 24, 2016

NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as exclusive advisor to Saint Clare’s Health System (“Saint Clare’s”), previously sponsored by Catholic Health Initiatives (“CHI”), in its sale to Prime Healthcare Services (“Prime”), a national for-profit healthcare system headquartered in Ontario, California.  Saint Clare’s, located in Denville, NJ, operates two acute care hospitals and 1 behavioral health hospital with a total of 478 beds, as well as other facilities in Morris and Sussex counties.

Despite northern New Jersey’s favorable demographics, Saint Clare’s had been challenged by a number of formidable competitors in the market, which led to a significant decline in volume and operating performance.  With almost no additional facilities in the region and limited opportunity to improve Saint Clare’s financial performance, CHI made the decision to find a partner willing to provide the capital commitment that would allow for the continuation of high quality care in the community while also expanding service lines.

Through a carefully managed sales process, H2C obtained several competitive bids with fully negotiated asset purchase agreements prior to the selection of Prime as the acquirer.  H2C highlighted Saint Clare’s essential position in northern New Jersey with over 60,000 emergency department visits and more than 118,000 outpatient visits, making the system an integral and life-saving community asset.  Additionally, the process focused on aligning Saint Clare’s with a high quality and financially strong partner to preserve Saint Clare’s mission, and to ensure and enhance the quality of care to the community.  “The H2C team structured an effective competitive bidding process that provided the best possible opportunities for us,” said Leslie D. Hirsch, President and CEO of Saint Clare’s at the time of the sale.  “H2C provided strong leadership and guidance, and effectively managed an arduous and complicated process to help us achieve a very successful result.”

“As a result of H2C’s expertise in sell side transactions, H2C maximized the purchase price, secured $30 million in capital improvements at Saint Clare’s facilities over the next five years, and maintained charity care at or above current levels at the hospitals.  In addition, Prime agreed to preserve Saint Clare’s Catholic identity and adhere to the Ethical and Religious Directives for healthcare services at Saint Clare’s,” stated Michael Hammond, Principal at Hammond Hanlon Camp LLC.  Email Michael