SACRAMENTO -- San Diego is fine but not Anaheim. That's the message California Attorney General Jerry Brown's office sent Wednesday to an expanding health-care chain.
The AG's office Wednesday gave the thumbs-down to the agreed sale of non-profit, 224-bed Anaheim Memorial Medical Center to for-profit Desert Valley-based Prime Healthcare Services. Prime had announced the $55 million purchase earlier this year.One healthcare expert called the AG's decision to block the sale "extraordinary."
But five months ago Brown's office waved through Prime's equally controversial, $30 million purchase of 301-bed Paradise Valley Hospital near San Diego. Critics said a $40-million from hospital physicians should have been considered.
Opposition to Brown's decision there pushed a San Diego Democrat to introduce a bill giving the AG broader grounds to dismiss sales of non-profit hospitals to for-profit groups. Currently the AG can block sales only on fair-market-value grounds.
LegalNewsline | Cal. nonprofit hospitals take center stage as Brown vetoes sale
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