California Attorney General Grants Conditional Approval for Sale of St. Francis Medical Center to Prime Healthcare
Major Milestone Toward Completion of Sale to Prime Healthcare
(Lynwood, CA) –Verity Health and
St. Francis Medical Center announced today that the California Attorney General has conditionally
approved Verity Health’s application to transfer ownership of St.
Francis Medical Center to Prime Healthcare.
“Achieving this milestone is an important step in ensuring Prime
is able to preserve the St. Francis mission for the benefit of associates,
members of the medical staff and most importantly the patients and Southeast
Los Angeles community that has relied on St. Francis for 75 years.”
said Rich Adcock, CEO of Verity Health
In early April, the U.S. Bankruptcy Court for the Central District of California
in Los Angeles approved the Asset Purchase Agreement (APA) for the sale
of St. Francis Medical Center to Prime. Under the agreement, Prime will
acquire St. Francis for a net consideration of over $350 million, including
a $200 million base cash price and $60 million for accounts receivable.
In addition, Prime has committed to invest $47 million in capital improvements.
As part of its APA, Prime committed to meeting and exceeding mandates for
access and services, including maintaining all essential care, trauma
care, and community benefit programs, while continuing St. Francis’s
important mission of service. In addition, Prime plans to expand service
lines based on community need. As part of the transition, Prime has already
begun executing on its commitment to $47 million in capital investment
by installing best-in-class technology and systems such as Epic, as an
integrated electronic medical record, Omnicell systems for automated medication
dispensing, and new interventional radiology and cardiology capability,
all of which will serve to improve quality and the patient and caregiver
experience at St. Francis.
“We are honored to be selected to continue the St. Francis legacy
and will continue to collaborate with the Attorney General’s office
while we examine the recommended conditions and work to finalize the sale,”
said Sunny Bhatia, MD, CEO, Region I and Chief Medical Officer of Prime
Healthcare. “St. Francis’s mission is especially critical
during this pandemic and Prime has already started investments that will
optimize patient care at St. Francis. We recognize the tremendous contributions
of our staff at St. Francis, along with those across the nation who are
tirelessly serving on the frontlines.”
The Attorney General’s office conducted an exhaustive review of the
transaction for the past several months and considered public input on
the proposed transaction. The Attorney General’s approval includes
conditions for the sale which Prime is currently reviewing. Pending a
final ruling by the Bankruptcy Court, the transaction is expected to be
completed this summer.
About Prime Healthcare
Prime is one of the nation’s leading health systems with 45 hospitals
and more than 300 outpatient locations in 14 states. Prime serves over
600 communities, employs 35,000 staff and provides 2.6 million patient
visits annually. In California alone, Prime operates 15 hospitals, employs
more than 10,000 staff, and serves tens of thousands of patients annually.
Prime is nationally recognized for award-winning quality care and has
been named a Top 10 and Top 15 Health System by IBM Watson. Its hospitals
have also been named among the nation’s best as ”100 Top hospitals”
53 times and have received more Patient Safety Excellence Awards from
Healthgrades than any other health system in the past five years.