News and research before you learn about it on CNBC and others. Request your 1-week free trial version from StreetInsider Premium here.
Lynwood, Calif., July 18, 2020 (GLOBE NEWSWIRE) – Verity Health and St. Francis Medical Center announced today that the California Attorney General is pending Verity Health's request to transfer ownership of the St. Francis Medical Center to Prime Healthcare has approved.
"Reaching this milestone is an important step to ensure that Prime's St. Francis mission benefits the benefit of staff, medical personnel, and especially patients and the community in southeast Los Angeles that has been on St. Francis can leave, preserve for years, ”said Rich Adcock, CEO of Verity Health.
In early April, the Los Angeles Central District Bankruptcy Court in Los Angeles approved the Asset Purchase Agreement (APA) for the sale of St. Francis Medical Center to Prime. Under the agreement, Prime St. Francis will purchase for a net amount of over $ 350 million, including a base cash price of $ 200 million and $ 60 million in receivables. In addition, Prime has committed to invest $ 47 million in capital improvements.
As part of its APA, Prime committed to meet and exceed the mandates for access and services, including the maintenance of all programs for primary care, trauma care and social benefits, while continuing St. Francis' important mission. Prime also plans to expand the service lines to meet the needs of the community. As part of the transition, Prime has already begun to implement its $ 47 million capital commitment by installing world-class technologies and systems such as Epic as integrated electronic patient records, Omnicell systems for automated drug delivery, and new interventional radiological and new cardiological skills, all of which serve to improve the quality and experience of patients and caregivers in St. Francis.
"We are honored to be selected to continue St. Francis' legacy and will continue to work with the Attorney General as we review the recommended terms and work to complete the sale," said Dr. Sunny Bhatia, CEO, Region I and Chief Medical Officer of Prime Healthcare. "St. Francis’s mission is particularly critical during this pandemic, and Prime has already begun investments to optimize patient care in St. Francis. We recognize the tremendous contributions of our employees in St. Francis, along with those across the country who work tirelessly at the front. "
The Attorney General's Office has conducted a comprehensive review of the transaction in recent months, and has considered public contributions to the proposed transaction. The attorney general's approval includes terms of sale that Prime is currently reviewing. The transaction is expected to close in the summer, pending a final decision by the bankruptcy court.
About Prime Healthcare
Prime is one of the country's leading healthcare systems with 45 hospitals and more than 300 outpatient locations in 14 states. Prime serves over 600 communities, employs 35,000 people and offers 2.6 million patient visits annually. In California alone, Prime operates 15 hospitals, employs more than 10,000 people, and tends to tens of thousands of patients annually. Prime is recognized nationwide for its award-winning quality care and has been recognized by IBM Watson as a Top 10 and Top 15 healthcare system. The hospitals have been voted "Top 100 Hospitals" among the best in the country 53 times and have received more Health Safety Excellence Awards from health degrees in the past five years than any other health system.
About the Verity Health System
Verity Health System operates the St. Francis Medical Center in Los Angeles County and the Seton Medical Center and Seton Coastside in San Mateo County. Verity previously owned and operated several California hospitals, including O’Connor Hospital in San Jose, St. Louise Regional Hospital in Gilroy, and St. Vincent Medical Center in Los Angeles County.
Source: Prime Healthcare