Court Approves Prime Healthcare Foundation’s Acquisition of Southern Regional
Posted on Oct 28, 2015
The United States Bankruptcy Court for the Northern District of Georgia approved Prime Healthcare Foundation's Asset Purchase Agreement for Southern Regional Medical Center, and issued an order to proceed with the acquisition on Tuesday, October 27.
In late July, Prime Healthcare Foundation, an affiliate of Prime Healthcare Services and an award-winning non-profit hospital system operating seven hospitals in two states, submitted a Letter of Intent to purchase most of Southern Regional's assets. Prime Healthcare Foundation will operate the hospital under a management services agreement until the sale is completed in early December.
The Prime Healthcare Foundation will continue to work with the Georgia Attorney General's office, which must review and approve the sale of a non-profit healthcare provider. A public forum, required in the Attorney General review process, is currently scheduled for November 10.
In addition, the transaction will be reviewed by the Georgia Department of Community Health (DCH).
Prime Healthcare Foundation has committed to investing at least $50 million in capital improvements in the hospital over the next five years, including equipment replacement and cosmetic improvements, operational improvements, Emergency Department improvements, and more than $1 million in recruitment of physicians.
"We are grateful for Prime Healthcare's commitments to invest in Southern Regional," said Jim Adams, Southern Regional's Board Chairman. "They are bringing a comprehensive approach to reviving, improving and preserving the health system, including investments in capital improvements and process improvements, both of which will improve patient experience and Southern Regional's competitive position in the Southern Crescent."
Prime Healthcare Services, and the non-profit Prime Healthcare Foundation, employ more than 40,000 people and own and operate 38 acute care hospitals in 11 states. Prime Healthcare was recognized as a Top 15 Health System in the nation in 2013 and 2012 and is the fastest growing health system in the United States, according to
"Prime Healthcare looks forward to expanding its presence in the Atlanta region and partnering with the Southern Regional community of dedicated physicians, nurses and employees," said Prem Reddy, MD, FACC, FCCP, Chairman, President and CEO of Prime Healthcare Services and Foundation. "We are committed to providing the best quality care in each and every community we serve, and the addition of Southern Regional to the Prime Healthcare family will allow us to continue that tradition."
# # #
FACTS ABOUT PRIME HEALTHCARE
- Since 2001, Prime Healthcare has revived 38 hospitals in 11 states, saving 40,000 jobs and countless lives.
- Prime Healthcare rescues financially distressed hospitals, turning them into thriving community assets and providing uninterrupted access to care.
- Prime Healthcare has never sold or closed a hospital.
- As a system, Prime Healthcare has been recognized among the "15 Top Health Systems" three times and is the only "10 Top Health System" west of the Mississippi. Prime Healthcare hospitals have been recognized among the "100 Top Hospitals" 33 times.
- Prime Healthcare has been recognized by The Joint Commission, the largest Medicare accreditation organization in the nation, which ranked six Prime Healthcare hospitals as "Top Performers on Key Quality Measures" in 2015.
- Many Prime Healthcare hospitals serve as critical safety net hospitals providing care to the underserved.
Of its 15 California hospitals, five qualify as Medi-Cal Disproportionate Share Hospitals (DSH), providing care to disproportionately higher volumes of Medicaid patients.
- Prime Healthcare cares for more senior citizens than most other health systems - over 55% of patients are age 65 or older.
- Prime Healthcare maintains ongoing efforts to expand important services like Behavioral Health. It has opened new services and is in the process of expanding several existing Behavioral Health programs. Prime Healthcare is dedicated to addressing the needs of Behavioral Health patients in psychiatric crisis and is making Telepsychiatry services available in several Emergency Departments throughout the company.
- The Prime Healthcare Foundation, a 501(c)3 public charity dedicated to improving access to healthcare and increasing educational opportunities in healthcare, has donated millions of dollars to support free community clinics, nonprofit organizations, scholarships and academic programs in healthcare.
- The Prime Healthcare Foundation owns and operates seven hospitals in California and Texas. These hospitals were acquired in or near bankruptcy, donated to the Foundation debt free and are now successful community assets.
- With an initial contribution of $40 million, the Prime Healthcare Foundation is supporting a new not-for-profit medical school in San Bernardino County - the California University of Science and Medicine.
- All Prime Healthcare hospitals have managed care contracts and the majority of the California-based hospitals
have contractual agreements with the major managed care providers - Aetna, Blue Cross, Health Net and United Healthcare.
- Prime Healthcare understands the importance of quality clinical care and preserves positions that are
directly involved with patient care. Following the acquisition of St. Mary's Regional Medical Center in Reno, the employee count increased by more than 500 FTEs in the first year, mostly in clinical personnel.
Prime Healthcare Foundation
- A 501(c)3 public charity founded by Dr. Prem Reddy and his family in 2008, has net assets of over $800 million.
- Owns and operates seven hospitals in California and Texas. These nonprofit hospitals follow Prime Healthcare's philosophy of compassionate, patient-centered, quality health care.
- With an initial contribution of $40 million, is supporting a new not-for profit medical school in Colton, San Bernardino County, CA - The California University of Science and Medicine.
- Supports community education programs and charitable causes
About Prime Healthcare Services and Foundation:
Prime Healthcare Services is an award-winning national hospital system with 38 acute-care hospitals providing more than 40,000 jobs in 11 states. Seven of the hospitals are members of the Prime Healthcare Foundation, a 501(c)3 public charity. Based in California and one of the largest hospital systems in the
country, Prime Healthcare is committed to ensuring access to quality healthcare. It has been recognized as among the "100 Top Hospitals"
in the nation 33 times and 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 among the "Top Performers on Key Quality Measures" in 2014.
For more information, please visit www.primehealthcare.com