Prime Healthcare to Acquire Verity Health System's St. Francis Medical Center
- U.S. Bankruptcy Court approves Prime Healthcare’s asset purchase
agreement with Verity Health System for the sale of St. Francis Medical
Center in Lynwood, CA for a net consideration of over $350 million
- Prime Healthcare has committed to operating the hospital for the benefit
of the community it serves, including a $47 million capital infusion for
technology, infrastructure, equipment, and system upgrades.
- Prime Healthcare commits to continuing St. Francis service lines, trauma
care, charity care, community benefit programs and service to the underserved.
- During the sale close process and beyond, St. Francis will remain focused
on providing the community with high-quality care, including the treatment
of COVID-19 patients
(LOS ANGELES – April 9, 2020) Prime Healthcare (“Prime”) and Verity Health System (“Verity”)
announced today that the U.S. Bankruptcy Court for the Central District
of California in Los Angeles has approved the Asset Purchase Agreement
for the sale of St. Francis Medical Center (“St. Francis”)
in Lynwood, California. Under the agreement, Prime will acquire St. Francis
for a net consideration of over $350 million, including a $200 million
($200,000,000) base price and $15 million in payroll and benefits for staff.
St. Francis, referred to as a “beacon of hope for South LA,”
is a pillar of the community and is an indispensable member of the Los
Angeles healthcare system. The 384-bed acute care hospital has one of
the largest and busiest private emergency trauma centers in Los Angeles
County — treating more than 84,000 children and adults each year.
Prime has committed to investing $47 million in St. Francis to fund capital
improvements, including substantial technology investments and system
upgrades, in addition to agreeing to make offers of employment to substantially
all St. Francis employees. The sale is being conducted through a court-supervised
process under Section 363 of the Bankruptcy Code and is subject to regulatory
review, in addition to other closing conditions. Prime has agreed to honor
the Attorney General and Bankruptcy Court conditions recently issued for
this sale and preserve the hospital, trauma care, service lines, charity
commitments, and community benefit programs.
“St. Francis Medical Center plays a crucial role in providing high-quality
care for patients in Lynwood and the surrounding communities,” said
Rich Adcock, CEO of Verity Health. “Prime has time and time again
saved hospitals to support communities. We are confident that Prime will
continue this record of excellence and look forward to working in partnership
through the sale close process.”
“Our agreement with Verity reflects our decades-long mission of saving,
improving and investing in community hospitals,” said Dr. Sunny
Bhatia, Prime Healthcare’s Region I CEO and Corporate Chief Medical
Officer. “We are honored and look forward to continuing St. Francis’
legacy of compassionate, critical medical care for the communities it
serves, especially during this unprecedented health crisis.”
St. Francis Medical Center remains fully operational during the sale close
process and Prime Healthcare will be supporting the hospital staff as
they continue to provide critical care during this COVID pandemic.
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