Prime Healthcare Services, Inc. completes the repurchase of hospitals and medical office buildings from Medical Properties Trust
Posted on Sep 8, 2022
Prime now owns all operations and the real estate for the majority of its
On September 1, 2022, Prime Healthcare Services, Inc. completed the repurchase
of nine general acute care hospitals and two related medical office buildings
from Medical Properties Trust, Inc. for approximately $360 million. Prime
Healthcare is the largest physician-founded and led health system in the
nation, recognized for award-winning care and forwarding health equity
by transforming hospitals into valued community assets.
The hospitals and medical office buildings purchased, part of Prime Healthcare’s
portfolio of 45 hospitals and more than 300 outpatient locations in 14
states, were spread throughout four states and originated from sale leaseback
transactions originally entered in 2012.
“Over the last ten years, Prime has invested physical and human capital
into these facilities, resulting in significant improvements in their
financial performance, operations and sustainability as community assets,”
said Prime’s Chief Financial Officer Steve Aleman. “The value
created from these assets and those across the system, by the Prime model,
has led to the ability to prudently repurchase the assets and further
expand the portfolio of our hospitals. With the purchase, Prime now owns
the operations and the underlying real estate of the majority of our hospitals.”
Prime funded the transaction from a combination of cash on hand, ABL credit
draw and various related entity financings. The transaction materially
reduces the company’s overall effective interest rate and annual
debt service with net neutral leverage.
Prime Healthcare stands apart from other health systems by its unique ability
to transform financially struggling hospitals while delivering award winning,
value-based care for hundreds of communities across the nation.
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About Prime Healthcare
As an award-winning health system headquartered in Ontario, California,
operating 45 hospitals and more than 300 outpatient locations in 14 states,
Prime Healthcare provides more than 2.6 million patient visits annually.
It is one of the nation’s leading health systems with nearly 50,000
employees and physicians. Fourteen of the Prime Healthcare hospitals are
members of the Prime Healthcare Foundation, a 501(c)(3) not-for-profit
public charity. Please visit
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