ANN ARBOR, Mich. – (Nov. 20, 2014) – Saint Joseph Mercy Health System (SJMHS) and Trinity Health announced today that they have entered into a definitive agreement under which Prime Healthcare Services, a hospital system based in Ontario, Calif., would acquire St. Joseph Mercy Port Huron, located in Port Huron, Mich. The decision of the SJMHS board of directors was supported by the hospital's local board.
"We are excited to acquire St. Joseph Mercy Port Huron and look forward to enhancing its services to the Port Huron community," said Prem Reddy, M.D., FACC, FCCP, chairman, president and CEO of the for-profit Prime Healthcare Services. "We are committed to making hospitals successful by strengthening, building, investing and improving their programs and facilities."
SJMHS and Trinity Health, following an extensive due diligence process which included a thorough assessment of strategic, financial and regulatory issues as well as a mission discernment, concluded that the sale of the hospital and its assets to Prime Healthcare Services was in the best interest of the colleagues, patients and communities being served.
Under the conditions of the agreement, Prime Healthcare has agreed to invest $20 million in capital improvements to the hospital and its operations over a three-year period. Dr. Reddy confirmed that the capital investments will include a Tru Beam Linear Accelerator, subject to Certificate of Need (CON) approval.
Prime Healthcare has committed to adopting a charity care policy that is just as favorable as the current charity policy in effect and will continue to provide treatment for indigent patients and programs that support the community, specifically including The Peoples' Clinic for Better Health, an indigent care clinic operated by the hospital in conjunction with the St. Clair County Medical Society.
Over the past several years SJMHS and Trinity Health have been developing a highly integrated care delivery system in southeast Michigan. However, St. Joseph Mercy Port Huron's distance from other SJMHS hospitals and outpatient centers have challenged the ability of SJMHS to integrate operations and prepare for population health management in the best interest of the community.
"When Prime Healthcare expressed an interest in the hospital earlier this year, we determined that both parties shared a common vision for the future of the hospital's healing mission that is in the best interest of its patients and employees," said Garry C. Faja, regional president and CEO, SJMHS. "We received the assurances we needed to feel confident that Prime Healthcare could and would continue serving the health care needs of the community. Prime Healthcare has a successful track record of sustaining and advancing access to quality health care services among its acquired hospitals."
Prime Healthcare fully recognizes the importance of preserving the hospital as an acute care hospital with an open and accessible emergency department. Prime Healthcare also will maintain an independent medical staff and local governing board.
"Prime Healthcare's investment in our community will serve to open a new and exciting chapter in our hospital's history," said Rebekah Smith, president and CEO, St. Joseph Mercy Port Huron. "Our affiliation will enable our hospital and staff to continue to provide state-of-the-art health care to our patients and community for the future. We are confident the hospital will be well positioned for decades to come as a result of this transaction."
The transaction is expected to close upon completion of all due diligence and receipt of necessary regulatory and legal approvals.
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Prime Healthcare Services
Saving Hospitals, Saving Jobs and Saving Lives. Prime Healthcare is an award-winning hospital system with 29 acute care hospitals providing more than 35,000 jobs in nine states. Based in California, Prime Healthcare is committed to providing the absolute best quality hospitals possible. It has been recognized as among the "100 Top Hospitals" in the nation 27 times, among the "15 Top Health Systems" three times and is the only "10 Top Health system" West of the Mississippi. Our hospitals have been recognized by The Joint Commission as having eight among the "Top Performers on Key Quality Measures" in 2013. Prime Healthcare is dedicated to serving our patients and communities. Since 2010, our hospitals have provided more than $2 billion in charity and uncompensated care. We provide more charity care than any other hospital system in California (excluding public hospitals) and nearly double the state average. With over
$800 million invested in capital improvements since 2005, we are committed to transforming all of our hospitals into award-winning centers of excellence. For more information, please visit
About St. Joseph Mercy Port Huron
Founded in 1954 by the Religious Sisters of Mercy, St. Joseph Mercy Port Huron is a 164-bed acute care hospital providing adult medical/surgical services, emergency care, cancer care, cardiac care, bariatric care, inpatient rehabilitation services including stroke care, orthopedics and joint replacement, and a vast number of other testing, health and medical services.
About Saint Joseph Mercy Health System
Saint Joseph Mercy Health System (SJMHS) is a health care organization serving six counties in southeast Michigan including Livingston, Macomb, Oakland, St. Clair, Washtenaw and Wayne. It includes 537-bed St. Joseph Mercy Ann Arbor, 443-bed St. Joseph Mercy Oakland in Pontiac, 304-bed St. Mary Mercy Livonia,
164-bed St. Joseph Mercy Port Huron, 136-bed St. Joseph Mercy Livingston in Howell, and 113-bed St. Joseph Mercy Chelsea. Combined, the six hospitals are licensed for 1,697 beds, have six outpatient health centers, five urgent care facilities, more than 25 specialty centers; employ more than 14,000 individuals and have a medical staff of nearly 3,200 physicians. SJMHS has annual operating revenues of about $1.9
billion and returns $127 million to its communities annually through charity care and community benefit programs.
SJMHS is a member of Trinity Health, the second largest Catholic health care system in the country. Based in Livonia, Mich., Trinity Health operates in 20 states, employs nearly 87,000 people, has annual operating revenues of about $13.3 billion and assets of about $19.3 billion. Additionally, the new organization returns almost $1 billion to its communities annually in the form of charity care and other community benefit programs.
For more information on health services offered at Saint Joseph Mercy Health System, please visitwww.stjoeshealth.org.